MHP, a Ukrainian poultry processor and agri-food player, has submitted a binding offer to acquire Spanish company UVESA Group.
With “well-established” poultry and pork operations, UVESA Group is a “market leader” in the Spanish food industry, MHP said.
The acquisition offer is addressed to all current UVESA shareholders, contingent on meeting a minimum acceptance threshold of 50.01% and fulfilling any necessary regulatory approvals, MHP said.
Financial terms of the deal have not been disclosed.
MHP added the acquisition is in line with its goal of “consolidating its position” in the global food industry, while securing a long-term investor for UVESA Group.
The poultry processor said it hopes to “contribute to Spain's agricultural and food sectors”, leveraging its “expertise and advanced production capabilities” to meet the rising demand for “high-quality, affordable poultry products and food solutions”.
The presence of MHP in Spain is expected to create new jobs and foster collaboration with local farmers and businesses.
It will also “strengthen” the poultry supply chain and contribute to Spain's agricultural sector, “enhancing” food sustainability and “driving economic growth”, MHP added.
MHP is listed on the London Stock Exchange and also operates its subsidiary Perutnina Ptuj in Europe. The Ukraine-based business exports up to 60% of its poultry products to over 70 countries.
The Saudi Agricultural and Livestock Investment Company owns a 12.6% stake in MHP, which also produces grains such as corn, soya, and sunflower seeds.
It has faced challenges in operating due to the ongoing conflict between Ukraine and Russia.
For the nine months ended 30 September 2024, its war-related costs totalled $38m, up from $23m in the first nine months of 2023.
In the first three quarters, MHP’s consolidated revenue remained largely unchanged at $2.26bn, slightly down from $2.29bn during the same period in 2023.
Gross profit increased by 35% to $627m over the nine-month period, driven by higher profitability in its agriculture operations.
