In the latest in a series of overseas acquisitions, Thailand-based Charoen Pokphand Foods (CPF) has acquired Cofco Meat Suqian of China, reports Bangkok Post.
The deal will cost CPF - the agribusiness arm of Charoen Pokphand Group (CP Group) - THB976 million (US$27.4 million), and has been brokered through an indirect subsidiary of CPF in China. CPF will also take over THB2.0 billion (US$56.2 million) in shareholder loans. Completion of the acquisition is expected by the end of this year.
According to Bangkok Post, Cofco Suqian’s business centers on poultry farming and the processing and sale of chicken meat products. Based in the area of the Yangtze River Delta, the company was first registered in China in 2010. For the first nine months of this year, Cofco Suqian posted a net profit of THB37 million (US$1.04 million) on a turnover of THB2.59 billion (US$72.8 million), having made a net loss last year. In early December, Cofco Suqian had estimated capital of more than CNY596 million (US$86.7 million).
Recent mergers and acquisitions
The latest deal involving the acquisition of Cofco Suqian follows a series of recent mergers and acquisitions by the CP Group. In October, the company announced it had purchased controlling shares in Fujian Sumpo Foods Holding Co., a poultry company based in Fujian, China, and, through a subsidiary, a manufacturer of processed foods.
At the same time, CPF confirmed other acquisitions in Taiwan, Thailand and the UK.
Reuters reported that CP Group has entered into a subscription agreement with Ningxia Xiao Ming Animal Husbandry Co. Ltd., a Hy-Line distributor in China.
CP Group has also recently expanded its presence in the U.S. with the purchase of Bellisio Foods. Based in Minneapolis, Minnesota, Bellisio produces frozen snacks, sauces and side dishes.
