Mexico’s SuKarne explores sale at valuation above US$2 billion
Rabobank and BBVA are advising the company as it assesses its options.
MEXICO – Mexico’s SuKarne, one of the country’s largest food companies and its leading meat exporter, is considering a sale that could value it at above US$2 billion.
The privately held company has brought in Rabobank and BBVA to work on the potential transaction, although the sources said there is no certainty that a deal will ultimately be completed.
SuKarne declined to comment specifically on a possible sale, saying it regularly reviews different strategies aimed at creating value and supporting its long-term expansion.
Rabobank did not respond to requests for comment, while BBVA declined to comment on its involvement in the process.
A major player in Mexico’s meat industry
SuKarne’s vertically integrated business could make it an attractive target for buyers seeking exposure to several stages of Mexico’s animal protein industry, as the company operates across cattle feeding, meat processing and distribution.
The company produces and distributes beef, chicken and pork, while also working with more than 60,000 agricultural producers across its supply network.
SuKarne says its activities provide the main source of income for more than 165,000 Mexican families and that the company operates across four continents and in more than 13 countries.
The business supplies much of Mexico’s supermarket sector and has also established a presence in the US retail market, while the company says it accounts for almost 75% of Mexico’s meat exports.
SuKarne also describes itself as the world’s third-largest cattle feeder and North America’s fifth-largest beef supplier.
The company was established in 1969 in Culiacán, Sinaloa, by José Isabel Vizcarra and María Calderón, with their son Jesús Vizcarra Calderón now serving as chairman and chief executive and holding a majority stake.
US cattle restrictions reshape trade
The potential transaction comes as the North American beef industry deals with changes in cattle supplies and cross-border trade following restrictions imposed by the US on Mexican cattle imports.
Washington halted imports from Mexico in an effort to prevent the spread of New World screwworm, a flesh-eating pest, adding pressure to an already tight US cattle market.
The suspension contributed to record US beef prices and affected businesses such as Texas feedlots that depend on cattle supplied from Mexico.
In July, the US Department of Agriculture said it would begin reopening the border to Mexican cattle in stages after concluding that trade could safely resume.
Meanwhile, Mexico’s restrictions on cattle exports accelerated domestic investment in feedlots and meat processing facilities, helping companies such as SuKarne expand their role in supplying beef to the US market.
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