Meat + Poultry - July 2010 - 12

The MeatIndustry
Software
Experts

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Business Notes
Brazil's Marfrig Alimento acquires
Keystone Foods for $1.26 billion
Marfrig Alimento SA, a Brazilian meat processing company, has acquired
Keystone Foods LLC, West Conshohocken, Pa., for $1.26 billion. Keystone
Foods is the largest privately held meat processor in the United States with
annual sales estimated at $6.4 billion.
"The global food market is growing and Brazil has capitalized on this
growth by strategically consolidating within the protein industry," said Marcos Molina, chairman and president
of Marfrig. "By adding the resources
and expertise of Keystone Foods and
its management team, we are expanding Marfrig's business with a scale and sustainable supply chain needed
to meet the very significant growth opportunities within the industry and
to attend the needs of our global clients."
Keystone Foods is a processor and distributor of beef, poultry, pork and
seafood to the retail and foodservice channels. Its customers include McDonald's Corp., Oak Brook, Ill.; Subway, Milford, Conn.; and Yum! Brands Inc.,
Louisville, Ky.
Marfrig is the second Brazil-based company to make a significant investment in the U.S. meat and poultry industry. In 2007, JBS S.A., São Paulo,
acquired Swift & Co., the third-largest red-meat processor in the U.S. for
approximately $1.5 billion. In 2009, JBS also acquired a majority stake in
Pilgrim's Pride Corp., Pittsburg, Texas, for approximately $800 million. ■

Luby's acquires Fuddruckers with
$63M bid at bankruptcy auction
Magic Brands LLC and Fuddruckers Inc. announced that cafeteria-chain
Luby's Inc. will purchase most of the assets of Fuddruckers and parent company Magic Brands and their affi liates for $63.45 million. The purchase was
made during a bankruptcy auction June 17.
"After Thursday's 11-hour auction process, Luby's proved to be the highest and best bidder with a final bid valued at $63.45 million," said Peter Large,
CEO of Magic Brands. "Based on current estimates and assumptions, creditor recoveries are anticipated to be substantial and could reach as high as 100
percent. This is an outstanding result for our creditors."
The results of the auction will be presented for approval by the U.S. Bankruptcy
Court in the District of Delaware in Wilmington on June 22. The transaction was
expected to close by July 9. "Luby's has
the capacity to support and grow the Fuddruckers brand, which we believe will be
to the benefit of both our corporate restaurants and franchisees," Large said.
Luby's operates 96 restaurants in Austin, Dallas, Houston, San Antonio,
the Rio Grande Valley and other locations throughout Texas and other states.
Luby's Culinary Services provides foodservice management to 17 sites consisting of healthcare, higher education and corporate dining locations.
Magic Brands LLC, based in Austin, currently operates 62 Fuddruckers
locations in 11 states and three Koo Koo Roo restaurants in California. An
additional 135 Fuddruckers restaurants are operated by franchisees. ■

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