(Adds comments from conference call with analysts, reporters)
SAO PAULO, June 23 (Reuters) - Brazilian meat packer JBS SA said on Tuesday that its purchase of local rival Marfrig Global Foods SA’s European Moy Park unit will lead to $50 million a year in cost savings.
JBS Chief Executive Wesley Batista said on a conference call that the company’s debt levels would remain little-changed by the $1.5 billion acquisition.
JBS said net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to rise to 2.54 from 2.3 at the end of the first quarter.
Batista said JBS will use its current cash flow to pay for the poultry and processed foods company based in Great Britain.
“This acquisition is relevant and strategic, but it’s not an acquisition that is relevant from the point of view of our balance sheet or leverage,” Batista said.
Moy Park generated net revenue in the first quarter of 2015 of 1.54 billion reais ($500 million). (Reporting by Gustavo Bonato; Writing by Reese Ewing; Editing by Chizu Nomiyama, Bernard Orr)