BRF sells stake in Singapore food service business

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BRF has sold its stake in Singapore food service joint venture SATS BRF Food (SBRF).

Asia-based food service operator SATS announced that it has acquired BRF’s 49% shareholding in the joint venture company for S$17m (R$51m).

SATS is present in over 60 locations and 13 countries across Asia Pacific and the Middle East, focusing on airline catering as well as central kitchens for food service chains and institutions.

Following this transaction, SBRF will become a wholly-owned subsidiary of SATS Food Services and be renamed Country Foods. According to SATS, this acquisition is in line with its vision to “feed and connect Asia”, as the company aims to consolidate its leadership position in aviation catering in Asia and become a leading central kitchen supplier to the food service industry in China and India.

According to a BRF statement, the transaction is part of the Financial and Operational Restructuring Plan, announced in June 2018, which has a main objective of accelerating the company’s financial deleveraging process and focus on its core markets, Brazil, Halal and Asia.

Alex Hungate, SATS president and chief executive officer, said: “By taking 100% ownership of our food distribution joint venture company we can accelerate end-to-end traceability of raw materials for our customers, and deploy data analytics to achieve greater efficiency and quality, while reducing food waste.”

Country Foods has also signed an exclusive distribution and licensing agreement with BRF Global GmbH to distribute products and the right to license brands owned by BRF SA in Singapore.