Breeders & Packers Uruguay sold to NH Foods Group

CDI Uruguay and CDI ANZ are pleased to announce the sale of BPU to NH Foods Group for US$135M. The transaction has been announced to the Tokyo Stock Exchanges (provide link) on April 28th. This transaction shows the strength of the CDI network, where the transaction involved a global search and deal negotiations between entities located in Uruguay, Japan and Australia. 

CDI was the lead Corporate Advisor to BPU. After a global search for potential acquirers NH Foods Australia was identified as providing the best offer for the business. NH Foods Australia owns a number of significant beef business in Australia, including Oakey Beef Exports, Wingham Beef, Thomas Borthwick & Sons and Walhalla Beef.  

Whilst the initial negotiations were with NH Foods Australia, once the Non-Binding Letter of Intent was signed, NH Foods Group engaged Goldman Sachs as their lead Corporate Advisor. CDI ANZ managed communication with Goldman Sachs and CDI Uruguay managed communication with BPU and NH Foods Corporate Advisors in Uruguay.

Role of CDI

CDI was engaged for the following activities;

•  Develop the Divestment Plan with Breeders & Packers Uruguay (BPU)

•  Develop the Information Memorandum

•  Identify acquirers of the business

•  Conduct a global search for potential acquirers

•  Contact the potential acquirers and manage communication with each acquirer

•  Manage initial discussions and site visits

•  Negotiate Non-Binding Offers

•  Finalize the Non-Binding Offer

•  CDI was the lead Corporate Advisor for BPU and Goldman Sachs for NH Foods group. CDI ANZ managed communication with Goldman Sachs and CDI Uruguay managed direct communication with BPU and NH Corporate Advisors in Uruguay

•  Develop and manage the virtual data room, corporate advisors and face to face meetings

Participating CDI Office
CDI Uruguay and CDIANZ.

Description of Client
Uruguay is an excellent country for meat producers because of its stable government, economy, and less climate change such as droughts. BPU is a leading slaughterhouse in Uruguay with professional management team and excellent business systems. BPU processes meat with the most modern equipment, and exports the products to China, Europe, the United States and other countries. It has sales of around US$200M and over 700 employees. The transaction value was US$135M.
As the livestock business is one of the key industries in Uruguay, the country has a rigorous cattle traceability system and prohibits the use of growth hormones, antibiotics and certain other substances to ensure the safety of the beef. This high level of transparency and safety are recognized as the additional value of the meat produced in Uruguay.

Description of Acquirer
NH Foods Group, founded in 1942, is one of the leading global companies in food production, with 155 farms, 2 fish farms, 100 processing plants, 3 research centers and 361 logistic and sales points, with operations in about 100 locations in 18 countries and regions excluding Japan. NH Foods Group produces fresh meat and marine products with annual revenues of over USD 11.3 Bn.

By acquiring BPU, the Company intends to expand its sales in enormous beef consumption markets including North America and Europe as well as emerging markets in Asia and other regions where the demand for the beef is rapidly increasing.
The transaction was announced to the Tokyo Stock Exchange on April 28th

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