NEW YORK, June 15, 2010 – The international law firm Milbank, Tweed, Hadley & McCloy LLP represented Marfrig Alimentos SA, a Brazil-based company engaged in the processing and distribution of meat and poultry products, in its agreement to buy 100 percent of the shares of Keystone Foods, a US-based manufacturer of food products and a global distributor to the food industry, for $1.26 billion. The acquisition of Keystone Foods positions Marfrig to be a lead supplier to McDonald's Corp., Campbell’s, Subway, Chipotle, ConAgra Foods Inc. and Yum Brands Inc. Keystone Foods serves more than 28,000 restaurants in 13 countries, and last year had a revenue of $6.4 billion from its food and distribution business.
“This purchase will allow Marfrig to capitalize on the growing global animal protein market and further strengthen its position as a supplier to the top food and restaurant brands,” said Roland Hlawaty, partner in Milbank’s Global Corporate Group.
Andrew Jánszky, founder and managing partner of Milbank’s São Paulo office, commented, “Marfrig has been looking to strategically expand its distribution, and this realizes their goal of acquiring a company with extensive worldwide resources and excellent management.”
In addition to Mr. Hlawaty and Mr. Jánszky, the Milbank team included partners Russell J. Kestenbaum (NY, Tax Department), Lewis T. Putman (DC, Global Corporate Group), Paul J. Wessel (NY, Compensation and Benefits Group), and Global Corporate Group associates Peter Heller and John Timmermann.
Other attorneys involved in the deal included Heraldo Geres, General Counsel of Marfrig Foods, and Weil Gotshal partner Michael Weisser and associate Michael Szlamkowicz, who represented the sellers, NY-based private equity firm Lindsay Goldberg LLC.
To finance the purchase, Marfrig will issue a private subscription of debentures worth 2.5 billion reais ($1.3 billion) mandatorily convertible into shares with a term of five years. The transaction is subject to customary conditions, including approval by antitrust authorities.
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