27 Oct 2025

MBRF expands partnership with HPDC and creates Sadia Halal, a multi-protein powerhouse in the Halal market 

  • The business will be the largest halal chicken company in the world and will encompass MBRF’s production units, distribution centers, and commercial offices in the region 
  • The partnership combines MBRF’s industrial expertise with the institutional and financial reach of the PIF through HPDC, creating a business model that is unique in the Halal world. 
  • The initiative strengthens the strategic partnership, unlocking value in a market with growing protein consumption and ample capital availability 
  • The transaction marks the first step toward an IPO of Sadia Halal, starting in 2027 

São Paulo, October 27, 2025 – MBRF and Halal Products Development Company (HPDC), a wholly-owned subsidiary of the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, announce the expansion of their joint venture, giving rise to Sadia Halal, a multi-protein powerhouse in the halal market. The transaction, valued at US$2.07 billion, encompasses MBRF’s factories and distribution centers located in Saudi Arabia and the United Arab Emirates; its distribution companies in Qatar, Kuwait, and Oman; and its direct export business of poultry, beef, and processed products to customers in the MENA region. The assets were valued at US$ 2.07 billion with net sales of US$ 2.1 billion in the last 12 months through June, equivalent to 7.3% of MBRF’s consolidated revenue, and EBITDA of US$ 230 million, giving an implied multiple of 9x. The assets in Turkey are not part of the transaction. 

The new configuration strengthens the partnership with HPDC and consolidates all of MBRF’s assets in the region, including the processed foods plant and innovation center under construction in Jeddah, as well as the stake in Addoha Poultry Company, a local chilled chicken producer in Dammam, which were already part of the joint venture. 

“The expansion of the partnership with HPDC aims to strengthen MBRF’s regional presence in one of the most lucrative and influential markets in the world, bringing our brands closer to local consumers and ensuring a permanent presence in the country’s food security agenda. In addition, the operation opens up the possibility for an IPO starting in 2027,” points out Marcos Molina, chairman and controller of MBRF. 

“The move is in line with MBRF’s strategy of strengthening its operations in the Halal market, where the company has been present for over 50 years and leads the market with Sadia, the consumers’ favorite brand, which holds a 36.2% market share* in the GCC (Gulf Cooperation Council) countries. Currently, the Company makes around 111,000 monthly deliveries to more than 17,000 points of sale in the region,” said Marquinhos Molina, Chairman of Sadia Halal and CEO for Saudi Arabia. 

The deal calls for a 10-year renewable agreement for MBRF to supply chicken and beef products to Sadia Halal from its factories in Brazil. Product pricing will be based on the total cost methodology (cost plus +5%), following applicable transfer pricing rules. 

“Sadia Halal will continue to leverage MBRF’s asset base in Brazil, with global competitiveness and export capabilities to key Halal markets. The strengthening of the partnership with HPDC also opens up the possibility of expanding the company’s operations in the region, expanding its production base. Based on a complementary portfolio, which includes the Sadia Bassi beef brand, we will continue to get closer and closer to our consumers and add sustainable value to our business,” said Fábio Mariano, MBRF Vice President for the Halal market and CEO of Sadia Halal. 

On the closing date, HPDC will hold 10% of the Company, with plans to reach 30% and the right to reach up to 40%. The increase in participation will occur through a capital contribution, 50% primary and 50% secondary. The transaction marks the first step toward an IPO of Sadia Halal starting in 2027, subject to market conditions and applicable regulatory obligations. 

“This move is fully aligned with the economic diversification goals set out in Saudi Arabia’s Vision 2030, accelerating the region’s sustainable transformation into a global hub for Halal products. Therefore, we are planning to increase our stake to 30%,” said Fahad AlNuhait, CEO of HPDC. 

Sadia Halal will adopt the highest standards of excellence in governance and ESG practices, consolidating Sadia Halal as a global benchmark for Halal foods. Sadia Halal was created with a clear purpose: to set a global benchmark in Halal proteins and contribute to global food security. 

The transaction is subject to approval by the relevant regulatory authorities. 

The Halal market 

The halal market is worth more than US$ 2 trillion per year, with animal protein being the main segment. Halal food consumption is estimated to exceed US$ 1.5 trillion by 2027. The Muslim population, which exceeds 1.9 billion people and is growing on average twice as fast as the global population, ensures stable and growing demand for Halal proteins. 

The demand for halal products extends beyond Muslim-majority countries, reaching regions with large Muslim communities and others that value the sector’s safety standards. Halal certification, which guarantees compliance with Islamic standards, is also seen as a seal of high quality, hygiene, and ethical production, attracting non-Muslim consumers as well. 

*Source: Nielsen