Polish meat processor PKM Duda is planning to take over local pig producer PPH Ferma-Pol, which is currently state-owned.
PPH Ferma-Pol is one of a number of government-owned companies which are earmarked for privatisation by the Polish Treasury this year. Warsaw-based PKM Duda, the largest player in the country’s red meat slaughtering and packaging industry, was the only outfit to throw its hat into the ring and make an offer for the company.
This is not the first time it has tried to acquire PPH Ferma Pol, which has an annual pork breeding capacity of around 40,000 heads, from the Polish state. In 2014 it submitted an offer to buy the business, but the previous government withdrew from negotiations.
The current government now wants to sell its 38,148 shares in Zalesie-based PPH Ferma-Pol, with the company estimated to be worth around PLN19.1m (US$4.8m).
In addition to its pig breeding activities, PPH Ferma-Pol also produces around 12,000 tonnes of feed each year, as well as owning a slaughterhouse which has the capacity to process around 4,000 heads a year for its own needs, and 50 a day for other companies.
The planned takeover is part of PKM Duda’s long-term stated strategy of bolstering its position in Poland’s pig processing sector. Last year the group acquired local pig and cattle farmer Agro Provimi, in a deal worth around PLN28.1m.
In an effort to boost brand awareness, PKM Duda which exports to various countries including Africa, Asia and Europe, is changing its name to Gobarto.