Brazilian meat company Marfrig has acquired a 51% controlling stake in National Beef, the fourth-largest beef company in the US. Marfrig will pay $969m (€786m) for the majority stake in National Beef.

The deal makes Marfrig the world’s second largest beef company with annual sales in excess of $13bn (€10.5bn) and profits of $1bn (€810m).

National Beef accounts for almost 15% of the cattle processing capacity in the US. The company operates from two slaughtering facilities in Kansas with the capacity to process 12,000 head of cattle per day, or just under 4.5m head per annum.

In 2017, National Beef generated sales of $7.3bn with export sales to 40 countries. For Marfrig, the export side of the National Beef business is particularly attractive as it will grant the company access to new markets like South Korea and Japan, where Brazilian beef is currently banned.

“With the transaction, we will have operations in the world’s two largest beef markets, will gain access to extremely sophisticated consumer countries and will be able to grow while maintaining rigorous financial discipline,” said Marfrig chief executive Martín Secco.

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Brazil’s Marfrig buys 51% stake in National Beef for $1bn

The Brazilian meat giant paid just under $1bn for a 51% stake in National Beef.