BRF has signed an agreement to sell 91.89% of QuickFood capital stock to Marfrig for $60m.

The two firms also signed a five-year partnership agreement to produce and distribute beef patties, meatballs, kibbeh and other products at the facility in Várzea Grande of Mato Grosso state.

The total value of the deal is around R$334m, of which $60m (R$234 million) is associated with the assets sale in Argentina, while the remaining amount is related to the sale of assets in Mato Grosso.

This amount is subject to adjustments following the completion of the deal, given that the portion associated with the net debt of QuickFood posted at year-end will be deducted from the agreement.

Marfrig Global Foods has notified the Securities and Exchange Commission of Brazil about the acquisition.

The firms will focus on innovation and development of new beef patty lines. Marfrig will assume operations at Várzea Grande plant to produce beef patties and other beef products, which will continue to be distributed and sold under BRF’s brands.

Marfrig global CEO Eduardo Miron said: “With this acquisition, we are reinforcing one of our strategic pillars: focus on growth in value-added products and brands. And we are doing this by acquiring a company renowned for operational excellence. We believe that this operation will create value for our stakeholders.”

A producer of beef products, cold cuts and frozen vegetables in Argentina, QuickFood owns the brands Vieníssima! and Paty. It has three facilities, which together have a daily processing capacity of 620 head of cattle. In a month, these facilities process over 6,000t of products.

Quickfood and Várzea Grande will be managed by Marfrig South-American operation CEO Miguel Gularte. Marfrig will finance the deals with part of its cash.

Buenos Aires Stock Exchange-listed QuickFood’s net sales touched $352m in the fiscal year 2017.

BRF announced its Operational and Financial Restructuring Plan in June. So far its divestment programme has resulted in the sale of assets worth R$822m ($210m).

BRF COO Lorival Luz said: “With this deal, we take an important step forward in BRF’s deleveraging process, in line with our previously announced divestment plan. The partnership with Marfrig will yield benefits for the operations and profitability of both companies and ensure the production of high-quality products for our consumers.”