Brazilian food company BRF SA on Jan. 10 said it agreed to divest its subsidiary Campo Austral SA, a producer of pork-based food in Argentina, in a $35.5 million deal.
Campo Austral runs three plants in Argentina, located in Florencio Varela, San Andrés de Giles, and Pilar. Under the agreement, BRF will sell 100% of the unit's shares, the brand "Campo Austral" and the San Andrés de Giles and Pilar facilities to Argentine company La Piamontesa de Averaldo Giacosa y Compañía SA.
Meanwhile, it will sell the Florencio Varela plant and all assets and liabilities related to it to BOGS SA, which also operates in Argentina.
BRF said the completion of the deal, which is part of the company's restructuring plan to reduce debt, is subject to customary conditions.
The transaction concludes the sale of all of BRF's assets in Argentina, which include processed-food maker Quickfood Sociedad Anonima and poultry company Avex SA. The sale of the Argentinean businesses amounted to $145.5 million.