Food and Beverage Business
Finance

Poultry group LDC in discussions to purchase fellow meat business Groupe Routhiau

Poultry group LDC in discussions to purchase fellow meat business Groupe Routhiau LDC Food and Beverage Business

LDC, a poultry group, is in exclusive negotiations to acquire Groupe Routhiau, a meat and plant-based business in France. Groupe Routhiau has been operating for almost 50 years, generating a turnover of €72m ($78.3m) in 2022 and EBITDA of €5.5m. On the other hand, LDC posted a revenue of €5.8bn in the fiscal year running from 1 March 2022 to 28 February 2023, an increase of 15.3%.

The proposed deal, subject to the approval of local competition officials, is aimed to expand LDC’s product ranges and generate synergies in logistics and purchasing. All employees at Groupe Routhiau will be retained post-transaction. The business, employing 360 people, produces fresh and frozen products such as cooked meats, beef carpaccio, plant-based ready meals and French desserts, supplying the retail and foodservice channels as well as offering private label.

LDC, with 93 facilities in France, Poland, Hungary, Belgium, and the UK, is looking to surpass the €6bn sales mark. This is evident from the company’s announcement of a 2.6% increase in revenue for the third quarter to €1.53bn, taking the sales for the year so far to €4.5bn, a 7.7% increase in reported terms. The poultry segment, which is LDC’s largest business segment, generated €3.3bn over the nine months, up 7.1%.

LDC is also moving towards expansion with deals in the pipeline. “Another factory is set to be added in Poland when LDC completes a deal announced last year to buy Indykpol, a Polish turkey producer.” Just recently, LDC also gained access to another facility in France when it signed off the purchase of the Les Délices de Saint Léonard factory in Morbihan, acquired from the Agromousquetaires Group.

Despite the increase in sales and the ongoing affirmative engagement, Groupe Routhiau is yet to issue a comment on the deal. However, LDC is optimistic about the unique synergies the acquisition will bring as it aims to expand its product ranges and generate competitive edge in the food and beverage industry trends.