Saturday, April 16, 2011

BEEF3 - Minerva

Orbe announced in its last release that bought Minerva. The main reasons exposed were:
  • Minerva is completing an intensive investment program started in 2006 that prompted the company to a slaughter capacity of 3,400 head per day to almost 10,000 head daily during the year 2011.
  • As a result, net debt increased, but the company has 600 mi in cash and the debt maturity is most due in 2019. But the company is now ready to start a deleveraging process.
  • Has initiated a joint venture with Dawn Farm to sell cooked frozen products and food service business. Minerva is now a global supplier to pizza Hut and Subway. 
I have to confess I'm not so much excited about this company/sector, but I'll take a look, because I know nothing about the it.

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