At a total cost of PLN108.3 million (US$27.8 million), Cedrob SA has acquired total ownership of ZM Silesia SA from Gobarto SA.
Around the start of 2020, Gobarto reviewed its strategy for the next five years. As one of the largest red meat suppliers in Poland, Gobarto opted to focus on its animal, production and distribution activities. It announced its intention to sell ZM Silesia, one of the country’s leading manufacturers of meat products. Once the transaction is completed, ZM Silesia will come under the ownership of poultry integrator, Cedrob.
All three companies belong to the Cedrob Group.
Benefits to all Cedrob Group companies
For its part, the latest acquisition contributes to Cedrob’s ambitions to build up strong capital group in the meat sector.
“This will not be possible without a very strong market position and capital capacity,” said CEO Andrzej Gozdzikowski. “This latest transaction will allow us to accelerate the restructuring process in the processing segment, and to prepare for further acquisitions.”
For Marcin Sliwinski, president of Gobarto’s management board, the sale of ZM Silesia increases his company’s financial capacity to further develop its interests in farming, production and distribution.
“We have recently made significant investments in breeding farms,” he said. “We are also developing the Gobarto 500 program, which aims to construct — together with Polish farmers — 500 modern livestock buildings.”
According ZM Silesia president, Mariusz Rusin, the change will not affect his company’s business goals.
“As part of Gobarto, we have already been working very closely with Cedrob, including using its raw materials in our plants,” he said. “Vertical integration within the Cedrob Group guarantees our security and business stability.”
More on Cedrob Group
Founded in the early 1990s, Cedrob Group began with the purchase of the Poldrob poultry meat plants in Ciechanow in northern Poland by a group of young entrepreneurs. Since then, the group has expanded to become a leader in the Polish poultry meat market.
In 2016, Cedrob acquired a significant share of Gobarto. One of the largest red meat suppliers in Poland, Gobarto also has businesses in Germany and Ukraine. The next year, the group purchased interests in meat processor ZM Silesia. In 2018, plans were laid for the firm’s third poultry slaughterhouse (in Ujazdowek), and its fourth feed mill.
In October 2019, Cedrob agreed with the Port of Gdansk Authority on the construction of a cold storage facility at the Baltic Sea port. At an estimated cost of PLN100 million, completion is scheduled for the second half of 2021.
With annual slaughtering of around 190 million birds, Cedrob SA is among the top 20 largest poultry meat companies in Europe, according to the Poultry International Top Poultry Companies. This output makes Cedrob SA Poland’s largest privately owned poultry producer.
With its own parent stock, the company operates hatcheries, breeding and broiler farms, slaughterhouses, a processing plant and feed mills, as well as a chain of retail stores to sell Cedrob’s fresh and frozen poultry products from the meat of chickens, ducks and geese. It holds halal slaughter certification, and exports to about 80 countries worldwide.
