BPU had revenues of around US$ 265 million last year, with an Ebitda margin of around 5%. Minerva is paying a multiple (EV/Ebitda) of 4 times for the asset, but operational and commercial synergies could make the purchase cheaper, taking the multiple to 2.5 times in 18 months with improved results, says a source .
Controlled by the Japanese NH Foods, the Uruguayan frigorific has lost money in recent years, which made the Asian group decide to sell a business for a price that many in the industry consider extremely low. A little over five years ago, the Japanese paid over US$ 130 million to acquire the BPU. The distance of the Japanese from the operation is pointed out as one of the problems for the management of the slaughterhouse.
With the purchase, Minerva will add a slaughtering capacity of 1,200 head of cattle per day, expanding operations in Uruguay by 40%. The Brazilian group is already the largest beef exporter in South America.
The acquisition will have an irrelevant impact on Minerva’s debt ratios, which earn more than R$30 billion a year. Last year, the Brazilian group also made a major acquisition in Australia, paying US$ 260 million to take over the country’s largest lamb slaughterhouse.
Minerva is valued at R$8.6 billion on the stock exchange. In the year, shares rose 11.97%.