MHP, a prominent Ukrainian poultry processor and agri-food player, has submitted a binding offer to acquire the Spanish company UVESA Group.
With its “well-established” poultry and pork operations, UVESA Group is regarded as a “market leader” in the Spanish food industry, according to MHP.
This acquisition offer is directed at all existing UVESA shareholders and is contingent upon receiving a minimum acceptance threshold of 50.01%, along with any necessary regulatory approvals, as stated by MHP.
Though financial terms have not been disclosed, MHP emphasizes that this acquisition aligns with its objective of “consolidating its position” in the global food industry while securing a long-term investor for UVESA Group.
MHP further articulates its aspiration to “contribute to Spain’s agricultural and food sectors,” leveraging its “expertise and advanced production capabilities” to meet the growing demand for “high-quality, affordable poultry products and food solutions.”
MHP’s presence in Spain is anticipated to generate new jobs and foster collaboration with local farmers and businesses.
This strategic move will also “strengthen” the poultry supply chain and enhance Spain’s agricultural sector, thereby “enhancing” food sustainability and “driving economic growth,” as mentioned by MHP.
As a company listed on the London Stock Exchange, MHP operates its subsidiary Perutnina Ptuj across Europe. The Ukraine-based business exports approximately 60% of its poultry products to over 70 countries.
The Saudi Agricultural and Livestock Investment Company owns a 12.6% stake in MHP, which also engages in the production of grains such as corn, soya, and sunflower seeds.
Despite challenges posed by the ongoing conflict between Ukraine and Russia, MHP continues to navigate the market effectively.
For the nine months ending September 30, 2024, the company reported war-related costs totaling $38 million, an increase from $23 million during the same period in 2023.
In terms of financial performance, MHP’s consolidated revenue for the first three quarters remained relatively stable at $2.26 billion, slightly down from $2.29 billion in the same period of 2023.
However, gross profit rose by 35% to $627 million over the nine-month period, largely driven by heightened profitability in its agriculture operations.
