Ukrainian poultry processor MHP has reached an agreement to acquire around 41% of Spanish peer Uvesa.
Agri-food business MHP had been vying for an interest in Uvesa since December alongside Spanish rival Grupo Fuertes, with both seeking a controlling share in the Tudela, Navarra-headquartered poultry business.
It has now emerged that MHP has succeeded in its bid and has inked a share purchase agreement (SPA) for the minority share, described by the Ukraine company as a “significant milestone” in its expansion into the Spanish market and to “strengthen its presence in the European poultry sector”.
In a statement today (21 March), MHP detailed it would acquire the Uvesa shares at €225 ($243.7) each, “with an additional contingent consideration of up to €21.43 per share, subject to certain post-closing conditions”.
The agreement allows other Uvesa shareholders to join the SPA within one month, offering them the same terms.
The purchase price will be paid in cash upon closing, the company said.
MHP said the transaction remains subject to regulatory approvals, including merger control and foreign subsidies clearance by the European Commission.
MHP board of directors executive chairman John Rich said: “Uvesa, with its solid reputation and deep roots in Spain, is a natural fit for MHP’s vision of sustainable growth and contribution to the country’s economic development.
“MHP brings its expertise, operational excellence, and advanced technology to support Uvesa’s growth, enabling it to scale and expand into new markets across Europe and the Middle East.”
MHP, listed on the London Stock Exchange, operates its subsidiary Perutnina Ptuj in Europe and exports up to 60% of its poultry products to over 70 countries.
It also operates a processing facility in the Netherlands, has a joint venture in Saudi Arabia, and manages sales and distribution hubs across the Middle East, including the UAE and Saudi Arabia, as well as in the UK.
The Saudi Agricultural and Livestock Investment Company holds a 12.6% stake in MHP.
Set up in 1964, Uvesa is a farm-to-fork operator. It produces fresh and frozen chicken, as well as marinated products, sausages, meatballs and charcuterie. The company also rears pigs to serve the food industry with fresh pork.
Commenting on the transaction, Uvesa’s president Antonio Sánchez added: “This partnership aims to strengthen our foundations, unlock new opportunities, and expand our reach.
“With MHP’s extensive expertise in innovation and superior operations, we are prepared to grow sustainably while remaining true to our local roots.”
