By Abigail Summerville and Cassandra Garrison
NEW YORK, Aug 3 (Reuters) – The owner of SuKarne, Mexico’s largest meat exporter, is exploring a sale that could value the company at over $2 billion, according to people familiar with the matter.
The company is working with investment banks Rabobank and BBVA on the sale process, the people said, requesting anonymity because the matter is private. They cautioned that no sale is guaranteed.
SuKarne declined to comment on a potential sale but said it “continuously evaluates different alternatives to create greater value and support its long-term growth and expansion,” in a statement to Reuters.
Rabobank did not respond to a comment request. BBVA declined to comment.
The animal protein industry in North America is highly consolidated already — the “big four” are Tyson Foods, Cargill, Brazil-based JBS, and National Beef Packing Co — but SuKarne’s operations span cattle feeding, meat processing and distribution, giving a potential buyer exposure to much of the protein supply chain in Mexico.
More than a year ago, the U.S. banned Mexican cattle imports to try to keep out the flesh-eating pest New World screwworm — a restriction that has strained the beef industry at a time when domestic cattle supplies have already fallen to historically low levels.
The import halt contributed to record-high U.S. beef prices and squeezed parts of the industry, particularly Texas feedlots that rely on Mexican cattle.
In July, the U.S. Department of Agriculture said it would begin a phased reopening of the border to Mexican cattle imports after determining it was safe to resume trade.
In Mexico, the ban accelerated investment in cattle feeding and meat processing, helping boost beef exports to the U.S., a transition companies like SuKarne helped fuel.
SuKarne was founded in 1969 by José Isabel Vizcarra and María Calderón in Culiacán, Sinaloa, Mexico. Their son Jesús Vizcarra Calderón currently runs the company as chairman and CEO and is the majority owner.
SuKarne, one of Mexico’s largest food companies, accounts for nearly 75% of the country’s meat exports, and it has a presence on four continents and in more than 13 countries, according to its website. It is the primary meat provider for Mexico’s supermarket chains and its products can be found in several U.S. grocery stores too.
The firm said in its statement it is the world’s third-largest cattle feeder and the fifth-largest beef supplier in North America. SuKarne works with more than 60,000 agricultural producers and said its operations support the primary income of more than 165,000 families in Mexico.
Its businesses include cattle feeding, meat processing and distribution of products including beef, chicken and pork.
(Reporting by Abigail Summerville in New York and Cassandra Garrison in Mexico City; Editing by Echo Wang and Lisa Shumaker)
Comments