Energetický a průmyslový holding selling its meat companies to Agrofert Holding

11. 5. 2010

Českomoravský uzenářský holding (ČMUH) and AGROFERT HOLDING recently signed an agreement on the sale of KRAHULÍK – Masozávod Krahulčí and KMOTR – Masna Kroměříž to AGROFERT HOLDING. The meat processing companies KRAHULÍK and KMOTR are subsidiaries of ČMUH, which itself is part of the ENERGETICKÝ A PRŮMYSLOVÝ HOLDING group.

The condition precedent for the closing of the transactions is the approval thereof by the competent anti-monopoly authorities. The contracting parties have agreed that the purchase price will not be disclosed.
For ENERGETICKÝ A PRŮMYSLOVÝ HOLDING, this investment in the meat processing industry was outside its core strategic business, which is energy. The divestiture of the meat processing companies is therefore in line with the strategy pursued by ENERGETICKÝ A PRŮMYSLOVÝ HOLDING. The meat processing companies have been through successful restructuring in the past few years; their operating efficiency has been increased to the target level and they have taken leading positions on the market. Thus, their growth potential has been fully exploited within the existing group of meat companies.
“To meet our growth targets, we either had to make more acquisitions, or, alternatively, exit from this industry. We have elected the latter, primarily considering the interest expressed by Agrofert, which we regard as the best partner for ensuring the further development of our meat processing companies,” said Daniel Křetínský, ENERGETICKÝ A PRŮMYSLOVÝ HOLDING Chairman and CEO.
“We are handing over to Agrofert modern and stabilised companies that are in a very good economic condition. We are convinced that within a strong farming & food group, they will continue to develop,” said Petr Hájek, ČMUH Chairman.
In the meat processing industry, the AGROFERT group currently owns KOSTELECKÉ UZENINY, into which MASO PLANÁ was merged at the end of 2009 and the beginning of 2010. For AGROFERT, the acquisition of KRAHULÍK and KMOTR will therefore translate into a stronger position in this market segment. The cumulative turnover of KOSTELECKÉ UZENINY, KRAHULÍK and KMOTR amounts to approximately CZK 7.8 billion and these companies have almost 2,500 employees between them.
“The acquisition of KRAHULÍK and KMOTR is the next step in our development concept focused on the Czech food industry’s major traditional brands,” said Libor Němeček, Head of the Mergers & Acquisitions and Corporate Finance Division at Agrofert.
Both of the brands, i.e. KRAHULÍK and KMOTR, as well as production in these companies, will be preserved after the change of hands. The change of the owner of KRAHULÍK – Masozávod Krahulčí and KMOTR – Masna Kroměříž will have no impact on business relationships with customers; all of these companies’ existing obligations to customers will remain in effect.