LDC has reached an agreement to acquire the export business France Poultry from Almunajem Group, based in Saudi Arabia. The announcement, made on February 26, ties back to LDC’s purchase of the previously struggling French poultry firm Doux in 2018.
The deal, sanctioned by a court administrator in Rennes, involves LDC acquiring 100% of France Poultry. As one of France’s leading poultry processors, LDC aims to redirect the focus of this asset away from Gulf markets.
Additionally, LDC is set to acquire a 35.5% equity stake in Yer Breizh, a hatchery and feed enterprise that supplies France Poultry.
Back in 2018, a consortium led by LDC, along with Almunajem, struck a deal to take over the faltering Doux, which led to the formation of France Poultry. This business was established to take over Doux’s export-focused poultry slaughterhouse located in Châteaulin, Brittany. Almunajem retained complete ownership of France Poultry, including the trademarks Doux, Doux FitLife, and Supreme for the GCC regions and Yemen.
In conjunction, Yer Breizh was formed to manage Doux’s upstream operations, encompassing a poultry feed plant, farms, and hatchery units. Both France Poultry and LDC held a 40.5% stake in Yer Breizh, thanks to LDC’s subsidiary, Amont LDC.
Natalia Bernard, LDC’s CFO, shared with Just Food that the purpose of these latest agreements is to tackle France Poultry’s pressing need for organizational restructuring while ensuring a sustainable future for its operations and industrial projects. Financial specifics of the deal were not disclosed.
Bernard indicated that LDC plans to pivot France Poultry’s activities to other markets starting next year. “France Poultry’s activity is described as primarily involving frozen poultry products – notably whole frozen chickens – exported to the Middle East,” she noted. She added that “France Poultry’s historical activity on the GCC markets is not profitable under current economic conditions.”
LDC is also planning to construct a new poultry slaughterhouse for France Poultry, slated for operation by early 2028. Bernard clarified that “the existing industrial facility is described as specialised in small chickens intended for freezing and export and as not being adapted to French domestic market demand.”
Moreover, she emphasized, “the announced approach is not framed as a straightforward shutdown but rather as a progressive reorganization, involving a transition phase, an adaptation of the activity at the existing site, and the subsequent commissioning of the new dedicated facility.”
For those keen on the latest developments in the food and beverage industry, this acquisition signifies an important shift, paving the way for new trends in the food and drink business and consumer behavior.
