NEW YORK: The owner of SuKarne, Mexico’s largest meat exporter, is exploring a sale that could value the company at over US$2bil, 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 and Rabobank did not respond to comment requests. 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 US 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 US beef prices and squeezed parts of the industry, particularly Texas feedlots that rely on Mexican cattle.
In July, the US 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 United States, a transition companies like SuKarne helped fuel.
SuKarne was founded in 1969 by Jose Isabel Vizcarra and María Calderon in Culiacan, Sinaloa, Mexico.
Their son Jesus Vizcarra Calderon currently runs the company as chairman and chief executive officer, and is the majority owner.
SuKarne 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 US grocery stores too. — Reuters
