The Brazilian meat company BRF's subsidiary in the Asian country has signed a binding agreement with Henan Best Foods, a subsidiary of the North American OSI Group.

BRF GmbH, a subsidiary of Brazilian meat company BRF, has signed a binding agreement with Henan Best Foods, a subsidiary of the American OSI Group, to acquire a processed food factory in China for US$ 43 million (40.88 million euros).

The closing of this transaction is subject to verification of the conditions precedent applicable to transactions of this nature, including approval by regulatory authorities and the corporate reorganization of the assets comprising the factory.

Built in 2013, the factory that BRF will purchase has two food processing lines, with a capacity of 28,000 tons per year and the possibility of expanding to two additional lines.

Following the expansion, which is estimated to cost around US$36 million (34.23 million euros), production is expected to reach 60,000 tonnes per year. In addition, it is expected that around 850 additional jobs will be created.