Polish poultry processor takes over local meat business

Based in Katowice, in the country’s south-western region, ZM Silesia operates a meat processing plant in Sosnowiec, which has a daily processing capacity of 500 tonnes (t), and a cutting facility with a capacity of 600t of pork, beef and poultry meat per day. Silesia says it has revenues in the range of PLN 500 million (€117m) per year. In total, the company’s facilities cover a surface of about 80,000 square metres.

Major acquisition approved

"The decision​ [to approve the takeover] expires if the transaction is not finalised within two years following the issuing of the decision​," said UOKiK in a statement.

The competition watchdog did not disclose the value of the acquisition. However, under Polish law, UOKiK’s approval is prerequisite to finalising all takeovers and mergers of Poland-based companies if the concerned entities posted combined revenues of at least €1bn worldwide, or €50m in the domestic market in the year preceding the transaction.

Last July, senior company representatives from ZM Silesia said the deal should allow the firm to make better use of its meat processing capacities.

Production to rise

“Currently, we use only 35% of our production potential. Our aim is to use the remaining 65% of our available production capacities​,” Krzysztof Woźnica, president of ZM Silesia’s management board, told local news site Portalspozywczy.pl​. 

“The objective is to become a leader in meat processing. I’m persuaded that, as part of Cedrob Group, we will be able to achieve this objective. We want to use the significant raw material capacity of the group, both in poultry and pork meat… as a result of which we will become highly competitive in the processed meat market. We will be able to offer high volumes of products to retail chains and distributors​.”

According to ZM Silesia’s president, the two meat processors will report consolidated revenues of about PLN5.5bn (€1.29bn) this year, which will position the new entity as a “leader in Poland’s meat industry​”, said the firm.

Set up in 1991, Cedrob said its portfolio comprise a wide range of processed poultry meat products, and its subsidiaries also process pork meat. The group’s facilities include its feed mills in Gumowo, Raciąż and Rypin, three poultry meat processing facilities in Ciechanów, Ujazdówek and Niepołomice, two meat processing plants in Ciechanów and Ciechanowiec, as well as a network of retail stores in various parts of Poland. 

In addition to the domestic market, Cedrob said it exports its products to other EU member states, Russia and Ukraine, as well as a number of Asian and African markets.