Brazil Enters US Beef Market with Marfrig Investment

The past week included a number of multi-billion-dollar deals: Novartis' $8.7 billion bid for AveXis, Franciso Partners’ public-to-private deal for Verifone, Altaris Capital's acquisition of a medical imaging manufacturer, Brazilian Beef Producer Marfrig's hope of entering into outside markets, and Premium Brands' buyout of meat snacks provider Oberto Brands. 

• At the beginning of last week, Novartis (NYSE: NVS) entered into a definitive agreement to purchase gene therapy company AveXis (AVXS) for $8.7 billion as part of its neuroscience strategy. Novartis recently completed a sale of its stake in consumer healthcare joint venture GlaxoSmithKline PLC for $13 billion. Bannockburn, IL-based AveXis focuses on clinical-stage gene therapy for those suffering from rare neurological diseases such as spinal muscular atrophy.

• Last Monday, payments technology company, Verifone (NYSE: PAY) agreed to be taken private by a consortium of investors, including private equity firm Franciso Partners and British Columbia Investment Management, for $3.4 billion including debt. The San Jose-based company provides payment transaction technologies and software at the point of sale (PoS).

• Last Tuesday, private equity firm Altaris Capital Partners agreed to take Analogic (NASDAQ: ALOG) private for $1.1 billion. The Boston-based healthcare services firm manufactures medical imaging equipment and security screening systems. 

• Last Monday, National Beef Packing Company reached a definitive agreement with Brazilian beef producer Marfrig Global Foods. Marfrig has agreed to pay $969 million to gain a 51% stake in the fourth largest domestic beef producer. The acquisition will make Marfrig the second largest beef producer in the world. Marfrig reasons that the acquisition will help the corporation expand its U.S. operations and open South Korean and Japanese markets, which had been previously closed for Brazilian exports.

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• Last Friday, Canadian food conglomerate Premium Brands Holdings acquired US meat snack manufacturer Oberto Brands for $188 million. The Kent, WA-based snack provider will enhance Premium Brands’ growing focus within the North American meat market. The deal amount was previously undisclosed; however, the firm stated it is paying approximately $237 million for the Oberto Brands acquisition and an increased stake in Vancouver-based McLean Meats, an organic processed meats supplier.