JBS owners acquire Brazilian missile maker Avibras

The J&F Group, the conglomerate behind Brazilian multinational JBS, has taken control of Avibras, a significant Brazilian manufacturer of missiles and rocket launchers. The deal, announced by the defense company, involves the acquisition of 100% of the shares of Nova AVB, the holding company of Avibras, by Globe Investimentos, a J&F subsidiary.

While the financial terms of the transaction remain undisclosed, the acquisition is subject to approval by Brazil's antitrust authority, the Conselho Administrativo de Defesa Econômica (Cade). J&F Group, owned by the Batista brothers, is a major private conglomerate with diverse interests spanning food, pulp and paper, energy, mining, and defense.

Reports suggest that J&F's investment in Avibras, which had been undergoing judicial recovery, was partly a response to a request from Brazilian President Luiz Inácio Lula da Silva to safeguard a company deemed strategically vital for the nation. J&F stated that the move is intended to bolster Avibras's recently resumed activities, preserve its technological and industrial capabilities, and foster conditions for sustainable growth in both domestic and international markets.

Founded in 1961, Avibras has established itself as a key player in Brazilian military technology, particularly with its internationally recognized Astros rocket artillery system. The company also develops other products like the MTC-300 tactical cruise missile. Prior to its severe financial downturn, Avibras had a history of exports to countries including Saudi Arabia, Qatar, Indonesia, and Malaysia, dating back to the 1980s and 1990s.

The acquisition marks the end of a prolonged period of crisis and restructuring for Avibras. The company entered judicial recovery in 2022 after experiencing payment suspensions and a lengthy workers' strike that crippled operations. As part of the restructuring, a creditor, Fondo Brasil Crédito, led an alternative recovery plan that resulted in the creation of Nova AVB, concentrating strategic industrial and technological assets while the original Avibras entity managed the judicial liabilities.