Genus plc (“Genus” or the “Group”), a leading global animal genetics company, announces the acquisition of Génétiporc, the porcine genetics business of Aliments Breton Foods Group. Aliments Breton is the largest producer and processor of organic and natural pork in North America. Génétiporc is based in Canada, and has operations in the United States and Mexico and a joint venture in Brazil. The total consideration for the acquisitions including assumed debt and Genus' share of the Brazilian joint venture is $39.75 million.
Genus will acquire the U.S. and Mexican Génétiporc companies and certain assets in Canada, principally intellectual property, genetic nucleus herds of approximately 3,200 pure-line sows and customer contracts. The consideration for these acquisitions is $30.0 million in cash, which will be financed from existing facilities. These acquisitions also include assumption of debt of $5.6 million, which will be repaid at, or shortly after, closing. The closing is subject, amongst other things, to satisfactory completion of veterinary verification and is expected to occur in October 2013. Aliments Breton Foods Group will become a customer of PIC, Genus’ porcine global business unit, as part of a long term agreement to buy exclusively PIC’s genetics.
Agroceres PIC, Genus' 49 percent owned joint venture in Brazil, has signed a memorandum of understanding with the shareholders of Génétiporc do Brazil to acquire it for Real 18.5 million (US $8.32 million), subject to agreement of definitive documents and completion of confirmatory due diligence. The acquisition by Agroceres PIC will be funded by Genus and its joint venture partner, Agroceres, subscribing for additional equity pro rata to their existing equity ownership.
Commenting on the acquisition, Karim Bitar, chief executive of Genus, said, “The acquisition of Génétiporc represents a further important step in the strategic growth and development of Genus as we focus on providing the very best genetics to meet the demands of a rapidly growing and urbanised global population.
“Génétiporc is an excellent fit with Genus’ existing business in the Americas, further strengthening our market position in that geography and also provides our customers around the world with a wider and deeper genetic pool. The enlarged business will provide a focused porcine genetics growth platform for Génétiporc’s customers and we welcome Aliments Breton Foods Group as a significant customer and partner for the future.”
For more information, go to: www.genusplc.com