MHP close to sealing deal with Perutnina Ptuj
The agricultural holding signed a deal with Perutnina last week, acquiring 90.68% of the business, which it said would strengthen its position as a “global player” in the industry.
In a statement, MHP said: “MHP is undertaking a major strategic step with the acquisition of Perutnina, which will add value to the company and strengthen its position as a global player. The plans are to grow sales of existing Perutnina brands/products in the wider Balkans and in Western Europe.”
Recently, MHP announced its plans to invest around €200 million in the Perutnina production base over the next four to five years to strengthen its existing business model and investment in its development and technology.
Fitch Ratings, the credit agency handling the acquisition, said it believed the deal would improve MHP’s business profile in terms of diversification and size, as well as reduce its exposure to the weaker-than-average Ukrainian operating environment.
“Perutnina's acquisition fits into MHP’s strategy to increase its presence outside Ukraine, especially in the European Union, and increase its turnover from added-value products,” said a Fitch Ratings spokesperson.
“We calculate that Perutnina would represent around 20% of sales and almost 10% of EBITDA pro forma for the consolidated group in FY18, enabling MHP to generate two-thirds of its revenues and around 60% of EBITDA outside Ukraine.”
Perutnina Ptuj focuses on meat products such as chicken, turkey and pork, while MHP sells around 60% of its poultry products domestically and around 40% to more than 60 countries around the world.
