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Brazil's JBS concludes deal to buy Bunge's margarine, mayonnaise business

SAO PAULO (Reuters) - Brazilian food processor JBS SA said on Monday it concluded the acquisition of the margarine and mayonnaise businesses from Bunge’s local unit, according to a securities filing.

The deal included purchase of three manufacturing facilities previously owned by Bunge that are located in the states of Santa Catarina, São Paulo and Pernambuco. Commodities trader and food processor Bunge agreed to sell its margarine and mayonnaise assets in Brazil to JBS’s subsidiary Seara Alimentos in December of last year.

JBS said at the time Seara would pay Bunge 700 million reais ($131.24 million) for the assets.

The acquisition gave JBS rights over brands including Delícia, Primor and Gradina, strengthening the company’s position in the margarine market in Brazil as well as its distribution capabilities, according to the filing.

JBS said the deal is expected to bring in 1.2 billion reais of additional annual revenues to the Seara division. The acquisition is in line with a strategy to expand the company’s portfolio of higher added-value products and brands.

Reporting by Ana Mano; Editing by Marguerita Choy and Sam Holmes

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