Bulletin: Minerva S.A. Ratings Not Affected By Acquisition Of Colombia-Based Red Carnica S.A.S.

SAO PAULO (Standard&Poor's) Feb. 24, 2015--Standard&Poor's Ratings Services said today that its ratings and outlook on Minerva S.A. (global scale: BB-/Stable/--; national scale: brA/Stable/--) are not affected following the company's recent announcement of the acquisition of 100% of Colombia-based Red Carnica S.A.S. shares. We believe that the total cash payment of about $30 million, along with the ramp-up process of the mill and working capital requirements, doesn't weaken the company's "strong" liquidity. This is due to Minerva's sizeable cash position and free cash flow generation compared with its debt maturities, capex, and working capital requirements, while the new operation would contribute additional EBITDA. The acquisition of Red Carnica adds 850 heads of cattle for slaughtering and

...SAO PAULO (Standard & Poor's) Feb. 24, 2015--Standard & Poor's Ratings Services said today that its ratings and outlook on Minerva S.A. (global scale: ##-/Stable/--; national scale: brA/Stable/--) are not affected following the company's recent announcement of the acquisition of 100% of Colombia-based Red Carnica S.A.S. shares. We believe that the total cash payment of about $30 million, along with the ramp-up process of the mill and working capital requirements, doesn't weaken the company's "strong" liquidity. This is due to Minerva's sizeable cash position and free cash flow generation compared with its debt maturities, capex, and working capital requirements, while the new operation would contribute additional EBITDA. The acquisition of Red Carnica adds 850 heads of cattle for slaughtering and deboning capacity per day, which will be integrated into Minerva's Colombian operations, generating synergy and scale gains and increasing the company's presence in the domestic market. Also, we...

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