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Gobarto Signs Deal to Acquire Polish Pig Breeding Business

2 December 2016, at 12:00am

POLAND - Polish meat processor Gobarto S.A. has signed a preliminary deal to acquire local pig breeder PPH Ferma-Pol sp. z o.o. from Poland’s Ministry of Treasure. The contract is worth about PLN 22 million (€4.9m), the group said in a statement, writes Jaroslaw Adamowski for The Pig Site.

The privatised company is enabled with a porker breeding capacity of some 400,000 head per year. PPH Ferma-Pol is based in Zalesie, in the country’s central Mazowieckie region.

As part of the deal, Gobarto declared it will invest at least PLN 10 million (€2.2m) at the company within a 48-month period following the acquisition. In addition to this, PPH Ferma-Pol will not cease its primary activities in this period, be merged with other entities, or be shut down by Gobarto, according to the statement.

Under the plan, the acquisition will be carried out by Gobarto’s subsidiary Agro-Duda sp. z o.o. Earlier this year, Gobarto changed its name from PKD Duda S.A. in a move designed to enhance the group’s visibility in both domestic and foreign markets. Agro-Duda was the ony entity that applied to take part in the negotiations on taking over PPH Ferma-Pol. In 2014, Gobarto attempted to acquire the company, but the privatisation process was eventually halted by the then Minister of Treasure.

Established in 1974, PPH Ferma-Pol is primarily active in the pig breeding sector, but, in addition to this, the firm also produces feed, with an annual capacity of some 12,000 tonnes. PPH Ferma-Pol is operated by 120 employees, and owns a slaughterhouse enabled with a capacity to slaughter some 4,000 head per year for its own needs, and 50 head per day for its customers, according to data from the company.

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