Brazilian food company BRF Brasil Foods SA will seek out some of the largest global players in the dairy industry to offer them its milk-based business, according to a person familiar with the situation.
The companies include French dairy firm Lactalis Group, Swiss food company Nestle SA and Sigma Alimentos, the food division of Mexican group Alfa SAB de CV, the person said.
Representatives for Lactalis and Nestlé weren’t immediately available for comment. A spokesman for Alfa declined to comment.
Dairy represents about 10% of BRF’s revenue, which totaled 7.6 billion Brazilian reais ($3.27 billion) in three months ended September 30. The company said in a statement late Wednesday that it is studying strategic alternatives for its dairy division, including partnerships or a partial sale of assets.
BRF is one of the largest food producers in Brazil, and is the world’s largest poultry exporter. The firm hasn’t provided an explanation for the exploration of the sale of its dairy business, a process that is being managed by Brazilian investment bank Itau BBA. A spokesman for BRF Thursday declined to provide further information.
«The company hadn’t given any signs it was planning to sell the unit,» said Sandra Peres, an analyst at Brazilian brokerage Coinvalores. A recent change of management could be responsible, she said.
Abilio Diniz, former controlling shareholder of retail group Companhia Brasileira de Distribuicao SA – Pao de Acucar, was elected BRF chairman last year. Claudio Galeazzi was appointed chief executive officer in August.
Source: Market Watch
