Feb. 13 (Bloomberg) -- Marfrig Alimentos SA, Latin America’s second-largest beef producer, concluded the sale of its U.S. and European distribution unit for $400 million.
The unit, a distribution center for McDonald’s Corp. in the U.S., Europe, Asia and Oceania, was sold to Rosemont, Illinois- based Martin-Brower Co., Sao Paulo-based Marfrig said in a statement today.
The deal, announced on Sept. 18, was initially expected to be concluded by December. Proceeds will be used to reduce debt and reinforce the company’s cash position, Chief Executive Officer Marcos Molina said Sept. 19.
Marfrig is divesting assets as it seeks to cut debt to less than three times earnings before interest, taxes, depreciation and amortization, or Ebitda. The company’s debt-to-Ebitda ratio almost doubled to 4 times in the third quarter from 2.4 a year earlier, Molina said Dec. 12.
The company also agreed on Dec. 21 to sell some logistics assets in Brazil to JSL SA for 150 million reais ($87.5 million).
Martin-Brower will complete its payments to Marfrig on March 30, the Brazilian company said.
--Editors: Robin Saponar, Dale Crofts
To contact the reporter on this story: Lucia Kassai in Sao Paulo at firstname.lastname@example.org
To contact the editor responsible for this story: Dale Crofts at email@example.com