Spanish meat firm Campofrio has completed its acquisition of Italian deli meat processor Cesare Fiorucci.
The transaction value reportedly totalled in the region of EUR170m (US$241m), and consisted of cash and the assumption of debt.
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“The successful completion of the acquisition will provide us with a strengthened market position in continental Europe,” a spokesperson for the group said.
This assessment is shared by Moody’s rating agency, which raised the company’s rating from B1 to Ba3 with a stable outlook.
Moody’s said that Campofrio had continued to improve its profit margins since its purchase of Smithfield Foods’ Spanish business, while this more recent acquisition is likely to further strengthen the group’s market position in Europe, its ability to push pricing through and manage rising costs. The greater size and geographic diversification of Campofrio will mitigate the impact of difficult market conditions and input costs, Moody’s suggested.
Meanwhile, a spokesperson for Fiorucci said that the deal would “open a new phase of expansion” in Europe for the Italian saussage and prepared meats firm.
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