Japan’s NH Foods has signed a deal to acquire US poultry processor LJD Holdings Group.
The financial terms of the transaction, struck through NH Foods’ US subsidiary Day-Lee Foods, were not disclosed.
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LJD Holdings Group, which includes Mountain View Packaging and Tamarack Foods, is a meat processing company that primarily produces and sells processed chicken products for US customers.
It has maintained a “favourable relationship” with Day-Lee Foods as “a business partner”, the Japanese company said in a statement.
NH Foods said it expects the demand for frozen foods in the US to continue growing at a “high” rate.
Therefore, the company said establishing new manufacturing bases and expanding production capacity alongside Day-Lee Foods’ existing facilities has become “imperative”.
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By GlobalDataWith LJD Holdings Group, which operates manufacturing facilities in both the eastern and western parts of the US, NH Foods said it will be “better positioned to meet the demands of this high-growth market.”
The acquisition will result in LJD Holdings Group becoming a consolidated subsidiary of NH Foods from the fiscal year ending 31 March 2025.
NH Foods’ financial performance for the first half of FY2025 showed net sales of Y683.9bn ($4.46bn), a 4.9% increase from the previous year.
Business profit rose by 8.5% to Y27.1bn, while profit before tax declined by 8.6% to Y28.9bn.
Profit attributable to owners of the parent company decreased by 10.6% to Y17.9bn.
NH Foods projects its full-year financial outlook for FY2025 with expected net sales of Y1.34tn, marking a 2.8% increase year-on-year.
