McCain Foods, the world’s largest maker of frozen potato chips, made an agreement to buy 70% of Brazil’s Sérya in an agreement that will allow the Canadian group to expand its presence in the country.
The value of the transaction has not been revealed. The remaining stake in Sérya is controlled by the Mining Furnace, in which McCain bought a 49% stake last year.
A source close to McCain’s operations in Brazil said the company’s Brazilian subsidiary received an injection of US $ 15 million from the parent company to secure the acquisition.
The source also said that McCain must buy the remaining stake in Horno de Minas in the next five years.
Based in Araxá (MG), Sérya has a factory with an annual production capacity of 12,000 tons.
The acquisition is considered McCain’s first step in producing locally frozen fries. So far, the company supplies the Brazilian market, including fast food networks such as McDonald’s, with products imported from other countries, mainly from Argentina.
“Brazil is the fifth largest frozen potato market in the world and has the potential to become the third until 2021,” McCain’s general director in the country, Aluizo Neto, said in a statement.