Ukrainian poultry processor, MHP, has secured an agreement to acquire approximately 41% of the Spanish poultry company, Uvesa.
MHP, a prominent player in the agri-food sector, has pursued an interest in Uvesa since December, competing against its Spanish counterpart, Grupo Fuertes, as both companies aimed for a controlling stake in the Tudela, Navarra-based poultry business.
Recently, it was confirmed that MHP successfully finalized its bid, formalizing a share purchase agreement (SPA) for the minority share. MHP characterized this acquisition as a “significant milestone” in its strategic expansion into the Spanish market, aiming to “strengthen its presence in the European poultry sector.”
In a statement issued on March 21, MHP disclosed that it would acquire Uvesa shares at a price of €225 ($243.7) each. Additionally, the transaction includes a contingent consideration of up to €21.43 per share, contingent upon certain post-closing conditions.
This agreement further allows other Uvesa shareholders to join the SPA within one month, offering them the same advantageous terms.
The purchase price is to be paid in cash upon closing, according to MHP. However, the agreement remains subject to regulatory approvals, including merger control and foreign subsidies clearance by the European Commission.
John Rich, executive chairman of the MHP board of directors, stated: “Uvesa, with its solid reputation and deep roots in Spain, is a natural fit for MHP’s vision of sustainable growth and contribution to the country’s economic development.”
Furthermore, Rich emphasized that “MHP brings its expertise, operational excellence, and advanced technology to support Uvesa’s growth, enabling it to scale and expand into new markets across Europe and the Middle East.”
MHP is publicly traded on the London Stock Exchange and operates its subsidiary, Perutnina Ptuj, in Europe, exporting up to 60% of its poultry products to over 70 countries. Additionally, MHP operates a processing facility in the Netherlands, maintains a joint venture in Saudi Arabia, and manages sales and distribution hubs across the Middle East, including the UAE and Saudi Arabia, as well as in the UK.
It is noteworthy that the Saudi Agricultural and Livestock Investment Company possesses a 12.6% stake in MHP.
Established in 1964, Uvesa functions as a comprehensive farm-to-fork operator. The company produces both fresh and frozen chicken, along with marinated products, sausages, meatballs, and charcuterie. Additionally, Uvesa rears pigs to supply the food industry with fresh pork.
Antonio Sánchez, president of Uvesa, commented on the transaction: “This partnership aims to strengthen our foundations, unlock new opportunities, and expand our reach.”
Sánchez further remarked, “With MHP’s extensive expertise in innovation and superior operations, we are prepared to grow sustainably while remaining true to our local roots.”
