“The recently completed second stage of the transaction comprised determining the target shareholding and corporate structure of the company, which was achieved through Plukon acquiring shares in the increased share capital of the company,” Poland-based law firm Magnusson Warsaw said in a statement.
The law firm advised on the transaction, which was finalised last July. Poland’s competition watchdog UOKiK decided to approve Plukon Food Group’s takeover plans in January 2017.
“Currently, Plukon is the majority shareholder of the company (60%), while members of the Wyrębski family, who have retained the status of minority shareholders, hold the remaining 40%. Magnusson advised the new shareholder,” added the statement.
The Polish company’s facilities, located in the country’s central region of Łódzkie, are fitted with a slaughter capacity of about 25,000 tonnes (t) per year. The value of the deal was not disclosed.
Funds to finance investments
“The funds acquired by the company allowed it to finance the acquisition of assets in relation to the completion of an investment in the construction of a modern slaughterhouse and poultry processing plant,” said Wojciech Fabrycki, head of the law firm’s corporate and capital markets practice.
The deal is part of Plukon Food Group’s foreign acquisition strategy, which the company has been implementing over the past few years. In late 2016, the Dutch group reached an agreement with French poultry business Duc Group, owner of four production facilities in France and one in Bulgaria.
Plukon Food Group said it is one of the leading players in the European poultry meat market, with 18 production facilities operating across Europe. In addition to the recently-acquired Polish facility, these include 10 poultry slaughterhouses and eight processing and packaging plants in the Netherlands, Germany, France and Belgium. The group’s facilities are fitted with a weekly slaughter volume of some 9 million chickens, according to data released by Plukon Food Group.
The Dutch business sells its products under a number of brands, such as Friki, Fairmast, and Maïski. In 2017, Plukon Food Group reported a turnover of some €1.7 billion. The group said it is operated by a workforce of more than 5,000 employees.
Poland’s demand for poultry meat is expected to continue its growth in the next few years, as indicated by the latest available figures from the Warsaw-based Institute of Agricultural and Food Economics (IERiGZ). In 2018, the country’s average consumption of poultry meat is forecast to rise to 30.5kg per capita, an increase from 30kg last year. Pork is expected to remain the most popular type of meat in the Polish market this year, but its consumption will stagnate at about 40.5kg, according to data from the state-run institute.