Grupo Lala to acquire Vigor Alimentos, S.A.
THE DEFINITIVE SOURCE FOR INVESTMENT PROMOTION EXECUTIVES
Schwan’s acquires Better Baked Foods & Drayton
AfDB to invest US$ 24 bn in agriculture in next 10 years
Unilever to acquire Weis ice cream business in Australia
Agri-Business I Diary I Confectionery I Meat & Poultry I Food processing
Emmi is selling its 24 % stake in Venchiaredo S.p.A
Emmi is selling its 24 % stake in Italian fresh cheese specialist Venchiaredo S.p.A., which is based in Ramuscello and generates sales of approximately EUR 20 million. In doing so, Emmi is focusing its activities in Italy on the dessert business, cheese exports from Switzerland and its 25 % stake in cheese trader Ambrosi S.p.A.
Emmi has been a minority stakeholder in cooperative Venchiaredo S.p.A. which is based in Ramuscello, Italy, since January 2010. At the same time Emmi Italy took over sales of Venchiaredo products. In 2012, Emmi increased its stake from 10 % to 24 %.
The aim of this holding was to participate in Italy’s growing fresh cheese market and generate synergies associated with fresh products from Trentinalatte. Due to the sale of Italian company Trentinalatte in autumn 2014, Emmi has now decided to also dispose of its stake in Venchiaredo and to give up the sale of Venchiaredo products. Granarolo S.p.A., based in Bologna (Italy), will take over the sale of Venchiaredo products. Emmi’s strategy continues to invest in markets and segments with considerable growth potential. Read more...
METRO INC. announced that it has signed a definitive agreement to acquire a majority interest in MissFresh Inc., a Montreal company specializing in the delivery of ready-to-cook meals. Ever-responsive to industry trends, METRO is thereby positioning itself in a growing market: the online sale of ready-to-cook meals. MissFresh's three cofounders will retain 30% of the capital and continue to take an active part in the company's management with the existing team.
"We are pleased to partner with the three founders of MissFresh, dynamic entrepreneurs who have developed a promising concept that is already popular with consumers.”, said François Thibault, Executive Vice President, Chief Financial Officer and Treasurer, METRO. “As an alternative solution to healthy eating that is easy to prepare and delivered to your door, MissFresh offers products that will be complementary to what we have in store, which will help us to better meet the needs of consumers.”
"We are thrilled to partner with METRO, a leading Canadian food distribution company, which will enable MissFresh to accelerate its growth and development in Canada.", said Marie-Eve Prevost, cofounder of MissFresh.
Founded in Montreal in 2015 by Marie-Eve Prevost, Bernard Prevost, and Ritter Huang, three passionate entrepreneurs, MissFresh is a Canadian company that meets a growing demand from families and professionals who want to eat healthy and balanced foods, but who have little time for shopping and preparing meals.Read more...
METRO INC. to acquire a majority interest in MissFresh Inc
AfDB to invest US$24 billion in agriculture in next 10 years
The African Development Bank (AfDB) will invest US $24 billion dollars in agriculture as part of its Feed Africa programme- a strategy for agricultural development in Africa.
President of the Bank, Akinwumi Adesina, said this in a speech he delivered at the 50th anniversary celebration of the International Institute for Tropical Agriculture (IITA) in Ibadan, Nigeria,
Adesina emphasized that the goal of the Bank is to “ensure that Africa feeds itself within ten years, and unlocks the full potential of its agriculture.”
The IITA hosted a series of events to celebrate 50 years of excellence in research. Dignitaries attended the event from across the continent.
The Institute recognized Adesina’s immense contributions to improving agriculture and named a newly constructed building after him.
The US $700,000 Akinwumi Adesina Youth Agripreneurs Building is a new Training Facility for Capacity Development for Youth Agripreneurs funded by the Federal Ministry of Agriculture and Rural Development and IITA. The training facility comprises two major training rooms that can conveniently accommodate 50 trainees each, two big offices for 30 interns each, and 20 standard sized offices. Read more...
Grupo LALA, S.A.B. de C.V. , announces that its Board of Directors, with the favorable opinion of its Audit and Corporate Practices Committee, has agreed to propose to LALA's shareholders the acquisition of up to 100% of the shares of Vigor Alimentos, S.A. ("Vigor"), a Brazilian dairy company, and directly or indirectly, 100% of the shares of Itambé Alimentos, S.A.
("Itambé"), also a Brazilian dairy company, for an implied value of R$5,725 million (the "Transaction"). Considering a consolidated 2017 estimated EBITDA of R$329 million, the multiple of the Transaction is 17.4x.
As a first step towards completing the Transaction, LALA, FB Participações and JBS S.A. entered into a share purchase agreement pursuant to which LALA will acquire, subject to its terms and conditions, 91.99% of the shares of Vigor.
In addition, as part of the Transaction, LALA may acquire from Arla Foods International A/S ("Arla") an additional 8% of Vigor's shares, increasing LALA's participation to 99.99%.
Finally, the Transaction contemplates LALA's acquisition, directly or indirectly, of up to 100% of the shares of Itambé, subject to the exercise of certain rights by Vigor's partner, Cooperativa Central dos Produtores Rurais de Minas Gerais Ltda. under their existing shareholders' agreement. Read more...
LALA To Acquire Vigor Alimentos, S.A.
To Boost Investor Returns, Agribusinesses Must Focus on Creating Value for Farmers
Agribusiness has hit a rough patch for investors. The industry’s five-year shareholder returns are among the lowest of 34 sectors analyzed recently by The Boston Consulting Group. This marks a 180-degree reversal from 2007 through 2011, when agribusiness was the best-performing industry, according to the management consulting firm.
What triggered this sharp reversal in performance? And how can agribusiness companies regain momentum and create outsized returns for their shareholders? These are among the questions answered in BCG’'s 2017 Value Creators report on agribusiness, Sowing the Seeds of Recovery, which is being released today. The study also predicts that industry M&A activity will likely rebound in the near future.
The 40 global agribusiness companies in BCG’s sample generated an average total shareholder return of 7% annually from 2012 through 2016—lower than all but two other industry groups surveyed. (TSR is the annual percentage return to owners, which comes from capital gains plus any dividends.)
For many agribusinesses, depressed prices for agricultural commodities have been the main factor impeding value creation. Corn prices, for example, have fallen by more than 50% since 2012. In the US, the collapse of commodity prices has driven down net farm income to less than half of the peak reached in 2013. Farm indebtedness has risen sharply, forcing farmers to delay or refocus investments. Considering projected increases in fuel costs and rising interest expenses on higher debt levels, the US Department of Agriculture forecasts that farmer spending on inputs (seed, fertilizer, and chemicals) per acre will remain flat in the coming years. A similar dynamic is evident in other regions.
“The forces pressuring agribusiness economics show no signs of abating in the near term, as commodity prices are likely to remain range-bound at depressed levels,” says Torsten Kurth, a BCG senior partner and report coauthor who coleads (with Decker Walker) BCG’s global work in agribusiness. “To emerge as the winners in the increasingly intense battle for a share of farmers’ spending, agribusinesses must place farmers’ economics at the center of decision making.” Read more...
Schwan’s Company, a leading national food business, announced it has acquired from NE Foods Inc. its wholly owned subsidiaries of Better Baked Foods and Drayton Foods.
The acquisition represents the second in as many months for Schwan’s as it works to increase its capabilities in the U.S. pizza market. The company announced in June the acquisition of MaMa Rosa’s Pizza, based in Sidney, Ohio.
“We are focused on adding to our capabilities and growing our share of the U.S. pizza market. We are extremely happy to add Better Baked Foods and Drayton Foods to our family of businesses as both are highly regarded for providing quality foods to their retail, food-service and home-delivery customers nationwide,” said Schwan’s CEO Dimitrios Smyrnios.
Better Baked Foods, based in North East, Penn., makes pizza, French bread pizza and sandwich items for private-label customers and food-service venues, and offers brands such as Better Baked Classics™, Daybreak Classics®, Papa Presto®, Zap-A-Snack® and Odyssey® foods in retail stores. The business, which includes Better Baked Foods of Erie, LLC, operates production facilities in North East, Penn.; Erie, Penn.; and Westfield, N.Y. Read more...
Cold Stone Creamery ,has announced the signing of a Master Franchise Agreement with Srivijaya Sdn. Bhd. to bring the Ultimate Ice Cream Experience to Malaysia, with 20 stores expected to open over the next five years, beginning with a location in the capital city of Kuala Lumpur.
"Cold Stone Creamery is a well-known ice cream brand that is enjoyed and loved all over the world and we are extremely excited to introduce and develop the brand in Malaysia," said Syed Haizam Jamalullail, director of Srivijaya Sdn. Bhd. "Customers are anxiously awaiting the opening of Cold Stone Creamery stores in the country and I am looking forward to the Malaysian market experiencing our super-premium ice cream in a fun and exciting manner that only Cold Stone Creamery can deliver."
Srivijaya Sdn. Bhd., whose shareholders and management include investors of local Food & Beverage outlets such as Las Vacas Meat Shop™ and Torii Yakitori™ Restaurant, as well as shareholders with experience developing the Cold Stone Creamery brand in another market, are eager to introduce the premium ice cream concept to Malaysia and expect the first location to open by the end of 2017.
"We are delighted at the opportunity to bring The Ultimate Ice Cream Experience to the Malaysian market," said Eddy Jimenez, sr. vice president of international operations and development at Kahala Brands™. "Srivijaya Sdn. Bhd.'s impressive F&B experience and comprehensive knowledge of the market make them the perfect fit to develop the brand in Malaysia. They share our passion for making people happy every day and have demonstrated a tremendous commitment towards the future growth of Cold Stone Creamery. We are confident that together, we will do amazing things as we bring the brand to the ice cream lovers of Malaysia." Read more...
Cold Stone Creamery To Open In Malaysia
Captain D's expands with Nine New Restaurants in Florida
Captain D's, the leading fast casual seafood restaurant, announced it has signed a franchise development agreement with industry veterans Richard Reeves and Larry Lavigne to expand its presence throughout Florida's west coast, bringing nine new restaurants to the Tampa-St.
Petersburg-Sarasota-Bradenton market. This agreement was fueled by the company's alliance with leading development firm American Development Partners (ADP), which has helped propel the brand's aggressive franchise development plans. Over the past several years, Captain D's has continued to achieve significant growth and experience ongoing success, with 2016 marking its sixth consecutive year of same-store sales increases and fourth successive year of record high system-wide AUV.
"At Captain D's, supporting both new and existing franchisees is a top priority and our alliance with ADP is a reflection of our commitment to them," said Michael Arrowsmith, chief development officer of Captain D's. "Our ongoing success has established Captain D's as one of the strongest franchising opportunities in the industry today and contributed to our expansion nationwide. We look forward to working with Richard and Larry, and have no doubt that their impressive expertise will be a valuable asset as we continue our growth in the Sunshine State."
Driving Captain D's growth in Florida are new franchisees Richard Reeves and Larry Lavigne, who will be opening nine locations in the greater Tampa Bay market over the next five years. As part of its alliance with Captain D's, ADP will assist the franchisees with the development of their new locations by facilitating the acquisition of land and overseeing construction. Reeves brings more than 40 years of industry experience to the table and is a multi-unit operator of World of Beer, Taco John's, Checker's and Church's. Lavigne currently manages daily operations at 15 Jet's Pizza locations and oversees 25 additional franchise locations, and will be overseeing operations at each of the new Captain D's restaurants.
Sydney & Toowoomba - Unilever announced that it has entered into a definitive agreement to acquire Weis, an Australian ice cream business.
Weis is a second-generation Australian ice cream and frozen dessert manufacturer, founded in 1957 by Les Weis with the original iconic Fruito Bar. Its unique range features a variety of ice cream formats including single bar, multi-pack bars, dairy-free sorbet tubs and frozen yogurt tubs. Weis ice creams will continue to be made in its factory in Toowoomba, Queensland, using locally sourced, natural and high-quality ingredients.
Unilever continues to develop its ice cream range to offer consumers around the world more innovative flavours and formats. Weis’ values and products will help meet increased consumer demand for ice cream made with premium ingredients, joining Unilever brands Grom, Ben & Jerry’s and Talenti in this high-growth segment.
Clive Stiff, Unilever Australia & New Zealand CEO said: “We are delighted to bring Weis’ exciting and delicious range into our portfolio, adding another Australian favourite to our leading ice cream range. This acquisition will bring Weis the benefits of scale, strong market access and ice cream category expertise to help take the business to the next level in its growth. Read more..
IFC and GAFSP Invest $10 Mn for Sustainable Fishing, in
IFC, a member of the World Bank Group, and the Global Agriculture and Food Security Program Private Sector Window, is lending $10 million to National Fisheries Developments, Ltd. (NFD), to support sustainable tuna production and employment in Solomon Islands.
This loan is IFC’s second investment to support the tuna industry in Solomon Islands. In 2013, IFC provided a $9-million loan to SolTuna Limited, a tuna processor and NFD sister company. The new financing will help fund the purchase of a new fishing vessel and ensure maintenance of the existing fishing fleet. IFC will also provide advisory services to promote best practices in environmental and social risk management.
“Expansion of NFD’s fleet will increase our capacity substantially and enable us to create more local jobs, directly in fishing, shore handling, provision of supplies and services, and indirectly in tuna processing,” said Frank Wickham, General Manager of NFD.
The tuna industry accounts for 18% of the country’s GDP. In recent years, NFD’s tuna catch has accounted for around 25 percent of the commercially caught tuna in Solomon Islands.
“IFC's engagements with NFD and SolTuna will boost their combined capacity to catch and process fish — an important source of revenue in the region — and also build on sustainable management practices and set a higher standard for the wild-catch fishing industry,” said IFC Director for East Asia and the Pacific, Vivek Pathak.
Solomon Islands benefits from a sustainable and well-managed fishery. In 2016, it received the Marine Stewardship Council (MSC) certification for skipjack and yellowfin tuna purse seine and pole-and-line fishery. MSC recognizes that these species are caught from well-managed stocks and that the fishing practices meet its robust sustainability standards. The World Bank is supporting the government’s fisheries management capacity through its Pacific Islands Regional Oceanscape Program. Read more...
STK, a leading company in the development and marketing of botanical based solutions for food protection, has signed a Commercialization and Distribution agreement with Syngenta Australia. The agreement grants Syngenta the exclusive right to distribute STK’s Timorex Gold® biofungicide for application in edible crops in Australia and New Zealand.
Timorex Gold® will be manufactured and supplied by STK, and marketed and distributed by Syngenta under STK’s brand.
Grosafe Chemicals Limited, who have managed the Timorex Gold® trial program and commercial development for STK over the past three years, will continue to support Stockton in product development, efficacy trials and technical matters and will hold the Registration for Timorex Gold®in New Zealand.
Timorex Gold®, a two-time winner of the AGROW Awards, is a biological food protection solution that improves productivity and efficiency of the crop, lowering residues in the food production while reducing chemical load and negative environmental impact. Timorex Gold® will complement Syngenta’s comprehensive fungicide portfolio, providing growers with an effective solution for integrated pest management programs (IPM) and integrated resistance management (IRM) programs, with a product that leaves no residues in the harvested produce. Read more...
STK signs a Commercialization and Distribution agreement with Syngenta Australia
Hormel acquires Fontanini Italian Meats and Sausages for $425 million
Hormel Foods Corporation, announced it has acquired Fontanini Italian Meats and Sausages, a branded foodservice business, from Capitol Wholesale Meats, Inc.
The company is based in the Chicago metropolitan area and specializes in authentic Italian meats and sausages, as well as a variety of other premium meat products including pizza toppings and meatballs.
“This is a strategic acquisition for our high-growth foodservice division. We have delivered a strong track record of success in the foodservice industry with a growing portfolio of customers in the lodging, restaurant, healthcare and college and university sectors,” said Jim Snee, president and chief executive officer at Hormel Foods. “The Fontanini® brand is highly regarded, and the addition of these products to our portfolio will allow us to accelerate growth for both Hormel Foods foodservice and for Fontanini through expanded distribution and new customers.”
“The Fontanini business perfectly complements our branded foodservice business,” said Jeff Baker, group vice president of foodservice at Hormel Foods. “We are excited about this new partnership and our ability to leverage key Hormel Foods resources such as R&D, operations, supply chain and finance to grow this dynamic business. While we are focused on ensuring a seamless transition and continued stewardship of the Fontanini® brand, we are also excited about leveraging their new state-of-the-art production facility, which has additional capacity to produce many Hormel Foods products.”
“Hormel Foods has an excellent reputation as one of the strongest food companies in the world with a track record of successfully acquiring family-owned businesses like ours,” said Gene Fontanini, chief executive officer of Capitol Wholesale Meats, Inc. “This acquisition will allow Fontanini to strengthen under the Hormel Foods umbrella given its leadership in retail combined with our shared leadership in foodservice. Through this business, the Fontanini family has left its mark on the world. Partnering with Hormel Foods will allow us to expand that mark. I couldn’t be more proud of all that we have accomplished and I look forward to seeing where we go next.” Read more...
AquaGen AS has entered into an agreement to purchase 51% of the shares in the Danish-based breeding company AquaSearch ova ApS, one of the world’s leading suppliers of genetics for portion-size trout market.
Fast growing market for portion-size trout market
Globally, portion-size trout is one of the fastest growing aquaculture sectors and has become an important commodity of animal protein. Production in 2016 was 650,000 tonnes, with annual growth of 5-7% over the last 3 years.
AquaSearch ova, established in 2006, is a leading global player in breeding and egg production of trout. From its headquarters in Billund, the company has developed a competitive product portfolio with a very cost-effective production and distribution from its 6 broodstock farms in Denmark. A very high level of bio-security enables the company to access all global trout markets
Strengthens the focus on trout breeding in general
“Our association with AquaSearch ova represents an important strategic milestone for AquaGen. With this we get a new platform for growth and value creation, helping AquaGen to maintain and strengthen its commitment to trout breeding. Due to a limited market for large trout, many breeding companies in Europe and Chile have chosen to close down their breeding programs for trout. AquaSearch ova’s strong position within the portion-size trout sector completes our commitment to all farmed species of salmon and trout. There is a great potential for AquaSearch ova and AquaGen to gather interesting synergies through exchange of experience, cooperation on R & D and the use of joint technology platforms in the breeding work”, says Odd Magne Rødseth, Chairman of AquaGen. Read more...
AquaGen acquires 51% of AquaSearch ova
Hormel Foods Has Acquired Ceratti brand
Hormel Foods Corporation, announced it has acquired Cidade do Sol, a growing, branded, value-added meats company in Brazil. The company offers more than 70 products in 15 categories including authentic meats such as mortadella, sausage and salami for Brazilian retail and foodservice markets under the popular Ceratti® brand.
“Strategic international growth is important to Hormel Foods and South America has been of interest to us for several years,” said Jim Snee, president and chief executive officer, Hormel Foods. “The Ceratti brand has a strong family ownership and a rapidly-growing distribution of its portfolio of value-added products. This acquisition is a strategic fit for Hormel Foods, provides us an initial entry into the Brazilian market and will serve as a platform for future growth in South America.”
“The acquisition of the Ceratti brand allows us to enter the fast-growing Brazilian market with a premium brand,” said Larry Vorpahl, group vice president, Hormel Foods and president, Hormel Foods International Corporation. “The Ceratti brand is poised for continued growth given its strong reputation in the market and outstanding products. This acquisition allows us to establish a full in-country presence with an excellent team of professionals in sales, marketing, operations, logistics and accounting. We are committed to continued international expansion and, with the addition of the Ceratti® brand, our global footprint will continue to grow.”
“We are certainly proud to become part of the Hormel Foods family,” said Mauro Preti, chief executive officer of Cidade do Sol. “Hormel Foods has a strong reputation with values that align closely with the values we have built throughout our 85-year history. They share an unwavering focus on product quality, state-of-the-art technology, and transparency. Hormel Foods acquisition of the Ceratti® brand provides the resources of a global company and will allow us to facilitate our plans for expansion and growth.” Read more...
Cargill invests $18 mn to increase Storage Capability for Gibbon, Neb. Growers
A multi-million dollar project to upgrade the Cargill grain facility in Gibbon, Neb., is underway. Once complete, growers will have access to an additional 2 million bushels of upright grain storage space and an increased unload capacity of 65,000 bushels per hour.
“The Gibbon area features high production, mostly irrigated farm ground that historically produced consistently high yields. We’re excited to expand our capabilities and improve service to growers in the area,” said Jim Reiff, Northwest commercial leader for Cargill’s Agricultural Supply Chain in North America. “In addition, the facility is on the Union Pacific mainline rail, connecting our growers to export markets in the U.S. Gulf, Pacific Northwest, and Mexico, and helping to meet the needs of key end user customers in California.”
The facility, located at 46750-70th Rd, Gibbon, Neb., has eight full-time employees who handle corn, soybeans and wheat. The improvements, which will be complete by early 2019, are being done in phases, with no shutdowns planned throughout construction. Read more...
HGGC Completes Acquisition of Nutraceutical International Corporation
Nutraceutical International Corporation, announced that HGGC, a leading middle-market private equity firm, has completed its previously announced acquisition of the company for $41.80 per share in cash. With the completion of the transaction, Nutraceutical's common stock will cease trading and no longer be listed on the NASDAQ Stock Exchange.
"We are excited to complete our investment in this great company, and we look forward to working with the Nutraceutical team in its next phase of growth and evolution," said Les Brown, Managing Director and COO of HGGC, who becomes Executive Chairman of the Company. "We are confident there is a tremendous opportunity for the company to continue to build on its strong market position and to bring more great products to its loyal customers."
Concurrent with the closing of the transaction, Nutraceutical founder, Chairman and CEO, Frank W. "Bill" Gay II announces his retirement after leading the company for nearly 25 years. He is succeeded as CEO by Chad J. Clawson.
"Since founding Nutraceutical with other key management 24 years ago, I have decided it's time to spend more time with family and supporting some causes I care about. I truly will miss other members of the Nutraceutical management team, our hard-working employees and all our loyal customers," Gay said. "This is a tremendous company and industry, and I will look back fondly on my years at Nutraceutical. I believe that HGGC is the best partner we could have hoped to find and that Nutraceutical's best days are yet to come." Read more..
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