Feed firm strengthens Spanish interests
SPAIN - Integrated feed and livestock company Nutreco intends to buy the feed and meat assets of Catalonian co-operative Copaga.
6 November 2007
2 minute read
The Copaga assets to be sold comprise a 300,000-ton capacity feed factory; an 11,000-sow integrated pig business producing approximately 200,000 pigs per year; and a poultry processing facility with a total production of approximately 25 million chickens per year.
The pig enterprise has cost-plus contracts with customers in place to mitigate sensitivity to market reference prices, while the poultry business has been under Nutreco control since July 2000 as a lease contract enterprise.
The acquisition will enable Nutreco to expand its Spanish business, further optimise feed and meat capacity and reduce production costs. The deal, which is estimated to add EUR 50 million in revenues, is subject to due diligence and approval of the members of the Copaga cooperative and of Spain's regulatory authorities. It is expected to be finalised by March of 2008.
The pig enterprise has cost-plus contracts with customers in place to mitigate sensitivity to market reference prices, while the poultry business has been under Nutreco control since July 2000 as a lease contract enterprise.
The acquisition will enable Nutreco to expand its Spanish business, further optimise feed and meat capacity and reduce production costs. The deal, which is estimated to add EUR 50 million in revenues, is subject to due diligence and approval of the members of the Copaga cooperative and of Spain's regulatory authorities. It is expected to be finalised by March of 2008.
