French food co-op Terrena and local agribusiness Sofiprotéol are in talks to buy a majority stake in poultry processor Groupe Doux from the Calmels family.
Terrena said it and Sofiprotéol were in “exclusive” negotiations with D&P Participations, the holding company of the Calmel family, to buy its 52.5% stake in Doux, France’s third-largest poultry group. Doux generated sales of EUR457m (US$509.3m) in 2014.
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The co-op said together it and Sofiprotéol would hold the majority shareholding in Doux. Sofiprotéol would be a minority shareholder.
Terrena, which already operates in France’s poultry sector, said the potential buyers wanted to “contribute to the consolidation of a poultry industry that is competitive in export markets”.
Poultry exports, particularly to the Middle East, is Doux’s largest business.
Terrena said the period of exclusive talks would be used to finalise a “draft agreement”, which would then need the “necessary approvals” and form the subject of consultation with staff.
From June 2012, Doux spent 18 months in administration after pressure from raw material costs and a failed foray into Brazil. After moving into administration, D&P took the 52.5% shareholding in Doux, with Saudi food distributor Almunajem attaining 25% of the company. The Doux family retained a 22.5% stake.
Terrena is a co-op based in western France, with interests in the meat, dairy and produce industries. In 2014, it generated sales of EUR4.7bn, operating income of EUR35m and net income of EUR22.1m.
Earlier this year, Sofiprotéol reorganised its business structure – moves that included changing its name to The Avril Group – as it looked to accelerate its growth.
Sofiprotéol is a unit of The Avril Group focusing on financing and development, primarily in businesses in the oils and proteins sectors. It houses Avril’s minority interests, including its stake in French poultry group LDC.
