BR Frango negotiating with funds to achieve ambitious expansion
BR Frango is negotiating with three investment funds to get the capital to finance an ambitious investment plan that would transform it into Brazil’s third-largest chickens and pork processor. The president and majority shareholder in the company, Reinaldo Morales, says he has been talking to one Brazilian fund and two foreign funds - one from Europe and other from the Middle East – who are interested in the segment.
Morales says the new partner will take a stake of approximately 30% in BR Frango, and the deal will go through in the coming months. BR Frango came into being just one week ago, with the opening of its first production facility in Santo Inácio (Paraná), but it has bold plans. "We want to be the country's third force [after Brasil Foods and Seara, owned by Marfrig]. The market needs a third brand," says Morals.
The company's total investment plan up to 2017 is estimated at $ 800 million. If implemented on time and on budget, the company aims to get to 2014 with revenues of R$ 1 billion. By 2017, its goal is to reach R$ 3.5 billion. Morales calculates the new company can grab up to 20% of the domestic poultry and pork market in this period. It is estimated that 60% of production will be exported, particularly to the Middle East and Europe.
Information provided by Valor Economico