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Brazil Co Pena Branca: In Due Diligence With Tyson
November 14, 2007: 03:21 PM EST
SAO PAULO -(Dow Jones)- Privately held Brazilian chicken company Pena Branca is in the final stages of due diligence with U.S. Tyson Foods (TSN) for a possible joint venture, Pena Branca's director told Dow Jones Newswires on Wednesday.
"We are just finishing due diligence and I suspect the deal will be complete within the next 60 days," said company director Antenor Barros Leal, who was traveling in Argentina at the time of the interview.
Leal called the deal a joint venture and not an acquisition.
Tyson announced on Monday that it planned to purchase a poultry company in Brazil before the end of the year, but did not provide further details.
Gary Mickelson, Tyson spokesman, in an email reply said the company has not revelaed the name of the company it hopes to buy and referred to a press release issued by the company on Monday.
Pena Branca is one of the leading whole frozen chicken brands in Sao Paulo. The company's 2006 revenues were $350 million, according to Leal. The company exports 40% of its production and processes around 300,000 chickens daily.
Pena Branca is part of the family-owned Predileto Alimentos holding company. Predileto also owns Moinhos Cruzeiro do Sul, a wheat milling company.
"Tyson contacted us first," Leal said.
"Negotiations are going well so far," he said.
On Monday, local newswire Estado reported that sources in the country's chicken market said Pena Branca was in talks with Tyson Foods.
Leal said that Pena Branca has been selling some of its chicken units over the last five years, including one in Para state and another in Rio Grande do Sul.
If the deal passes, it will be Tyson's first chicken-processing facility in Brazil, the world's top chicken exporter.
Tyson recently agreed to two joint ventures in China, both expected to be completed in 2008. Tyson said it expects to increase international sales to $5 billion by 2010 from $3 billion for 2007.
-By Kenneth Rapoza, Dow Jones Newswires, 11-14-07 1521 ET
Copyright (c) 2007 Dow Jones & Company, Inc.
November 14, 2007: 03:21 PM EST
SAO PAULO -(Dow Jones)- Privately held Brazilian chicken company Pena Branca is in the final stages of due diligence with U.S. Tyson Foods (TSN) for a possible joint venture, Pena Branca's director told Dow Jones Newswires on Wednesday.
"We are just finishing due diligence and I suspect the deal will be complete within the next 60 days," said company director Antenor Barros Leal, who was traveling in Argentina at the time of the interview.
Leal called the deal a joint venture and not an acquisition.
Tyson announced on Monday that it planned to purchase a poultry company in Brazil before the end of the year, but did not provide further details.
Gary Mickelson, Tyson spokesman, in an email reply said the company has not revelaed the name of the company it hopes to buy and referred to a press release issued by the company on Monday.
Pena Branca is one of the leading whole frozen chicken brands in Sao Paulo. The company's 2006 revenues were $350 million, according to Leal. The company exports 40% of its production and processes around 300,000 chickens daily.
Pena Branca is part of the family-owned Predileto Alimentos holding company. Predileto also owns Moinhos Cruzeiro do Sul, a wheat milling company.
"Tyson contacted us first," Leal said.
"Negotiations are going well so far," he said.
On Monday, local newswire Estado reported that sources in the country's chicken market said Pena Branca was in talks with Tyson Foods.
Leal said that Pena Branca has been selling some of its chicken units over the last five years, including one in Para state and another in Rio Grande do Sul.
If the deal passes, it will be Tyson's first chicken-processing facility in Brazil, the world's top chicken exporter.
Tyson recently agreed to two joint ventures in China, both expected to be completed in 2008. Tyson said it expects to increase international sales to $5 billion by 2010 from $3 billion for 2007.
-By Kenneth Rapoza, Dow Jones Newswires, 11-14-07 1521 ET
Copyright (c) 2007 Dow Jones & Company, Inc.
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