Brazilian meatpacker acquires Zenda Leather stake

Supplier will have steady source of raw materials

Larry Thomas -- Furniture Today, October 7, 2009

HICKORY, N.C. — Marfrig Group, a major Brazilian meatpacking company, has acquired controlling interest in Zenda Leather, a supplier of leather for the furniture, automotive and aviation industries.

Zenda, which is based in Uruguay and has its North American distribution center in Hickory, will continue to operate its tanneries, finishing and cut-and-sew plants. However, the company will benefit from the merger by having a steady, reliable source of raw materials, said Juan Diego Casaretto, Zenda's managing director for North America.

"It is a natural combination with mutual understanding," he said. "Both companies are walking parallel paths in search of quality, supported by strong investments, training and personnel growth."

Under terms of the deal, Marfrig acquired a 51% stake in family-owned Zenda for $49.5 million.

Among its worldwide operations, Marfrig operates four slaughterhouses in Uruguay, where Zenda has a tannery and a finishing plant.

Zenda also owns a tannery in South Africa, and has finishing and cut-and-sew plants in Argentina, South Africa, Germany and Mexico.

"We are very excited about this new partnership," Casaretto said. "It means a joined effort to provide our customers with controlled integral services, from the raw hide to the finished product, without jeopardizing the customized and friendly service each customer is entitled to."