French agri-food company LDC Group is working to acquire egg production business Matines, one of the largest egg businesses in France, from agro-industrial company Avril Group. If the deal is completed, LDC will account for 42% of the branded organic egg sector and 21% of the free-range egg sector in the country.
Currently, Matines sources 53% of its eggs from cage-free farms and has pledged to source 100% by 2025. LDC Group intends to complete Matines’ commitments pursuing organic, cage-free and free-range egg production, as well as maintain the egg sector’s current supply contracts.
According to the European Supermarket Magazine, Matines sold 250 million units in 2021, which resulted in a profit of US$43.6 million.
LDC Group’s interest follows Avril’s June 2022 announcement concerning its decision to voluntarily close its egg operations due to economic difficulties over recent years.
According to a Matines spokesperson, the closures were mostly due to an increase in grain prices, strong competition and the resulting rising costs for consumers.
LDC Group’s other acquisitions
LDC Group has made many other acquisitions over the past five years and announced that it is exploring opportunities to acquire businesses in Poland, Hungary and the U.K.
In December 2020, the agri-food company purchased 60% of Paris-based Asia General Food, which specializes in sushi.
In November 2019, LDC Group purchased two companies. The first was Société Luché Tradition Volailles from the Casino Group to help broaden its product offering to supermarkets and the hospitality sector. The second was Marnevall, a frozen breaded products company, based in Hungary.
In July 2019, the agri-food company purchased Kiplama, an import and distribution company in Belgium, which did work with LDC Group before its acquisition.
In May 2018, LDC Group announced its purchase of Hungarian duck and goose producer Tranzit to further expand into Europe.
