Parmalat: Memorandum of Understandings Signed with BRF to Acquire its Dairy Division

08 Sep 2014 --- Parmalat S.p.A. and BRF S.A., one of the top Brazilian companies operating in the food sector, listed on BM&FBOVESPA S.A. (Brazilian Stock Exchange), acting with the prior approval of the respective Boards of Directors, executed a binding memorandum of understandings establishing the key terms and conditions for the purchase by Parmalat of 11 BRF’s dairy division plants located in the Brazilian territory and the corresponding assets and trademarks.

The 2013 proforma revenues of BRF’s dairy division amounted to about reais 2.6 billion (equal to about 880 million euros).

BRF granted Parmalat an exclusive right, for the purpose of defining all definitive agreements.
This transaction, which is subject to the fulfillment of certain conditions precedent and the approval of the regulatory authorities, will be carried out at a price that, subject to certain adjustments, will amount to reais 1.8 billion (equal to about 610 million euros), “debt and cash free.”

This acquisition will be entirely financed with internal resources.