Brazilian meat processor Marfrig on Monday announced that it had reached a $680 million deal with OSI Group LLC, the largest meat supplier to McDonald's Corp., to purchase the Aurora, Ill.-based meat processor's businesses in Brazil and several European countries.

Marfrig, one of the largest Latin American beef processors, said the deal would include 15 facilities, including further processing and poultry slaughter operations, which the company estimates will have annual revenues of $2 billion. The transaction will include operations throughout Brazil and in the United Kingdom, France and the Netherlands.

Under terms of the deal, Marfrig will pay $400 million cash and $280 million in common shares. As a result, OSI will become a large shareholder in Marfrig and OSI President and COO David McDonald will join the Marfrig board of directors.

The transaction should be finalized later this year.

By Alicia Karapetian on 6/24/2008 for Meatingplace.com