Marfrig to Acquire Keystone

Latin American beef producer Marfrig Alimentos is to acquire Keystone Foods for $1.26bn.

The Brazilian company will sell 2.5bn reais ($1.4bn) of five-year bonds convertible into stock to finance the acquisition of Keystone from private equity firm Lindsay Goldberg.

The takeover deal will make Marfrig a supplier of meat products to McDonald’s, Subway Restaurants and Campbell Soup in 13 countries including the US, France and Australia.

The meatpacker has expanded production through 38 acquisitions in last three years, including the takeover of Cargill’s poultry and pork business in Brazil for $705.2m.

Industry analysts believe Marfrig net sales may triple this year to 27.8bn reais ($15.5bn) after the acquisition, from 9.6bn reais ($5.3bn) in 2009.