MHP Food and Agricultural Holding, Ukraine’s largest chicken producer, has submitted a binding offer to acquire UVESA Group (UVESA), the market leader in the Spanish food industry in the production of poultry and pork, the company’s press service reports.
“The transaction is an open tender offer addressed to all current shareholders of UVESA, which is subject to certain conditions, including, but not limited to, reaching the minimum acceptance threshold of 50.01%. If regulatory approvals are required to close the deal, MHP will ensure that all requirements are met,” the statement said.
The agroholding emphasized that this acquisition is another step in MHP’s development in international markets and strengthening the company’s position as an important player in the global food market and the European market in particular. Expanding its international presence is in line with MHP’s strategy of transforming itself into an international culinary company with operations in key regional markets.
MHP is one of the largest investors in Ukraine. Since the full-scale invasion, MHP has invested UAH 14.8 billion in business development in Ukraine.
“MHP’s main priority remains the further development of its business in Ukraine. We are working to ensure food safety, stable operation of enterprises, strengthening the country’s economy, supporting the military, our teams and communities, investing in Ukrainian businesses that expand the MHP culinary ecosystem,” the agroholding said, adding that despite the war, MHP demonstrates resilience and growth, scaling up its practices at foreign assets.
The company already has successful experience in acquiring and developing companies in the European Union – in 2019, Perutnina Ptuj (Slovenia, Serbia, Croatia, Bosnia and Herzegovina) became part of MHP Group.
MHP has considerable expertise in poultry production – for the second year in a row, the company has retained the status of the largest poultry producer in Europe according to the WATT Poultry International rating.
In addition, thanks to MHP’s business approaches, solutions and expertise, the European company has significantly increased its efficiency – Perutnina Ptuj’s EBIDTA grew from $34 million in 2018 to $91 million in 2023.
“This experience of MHP will make it possible to make a significant contribution to the agricultural and food sectors in Spain. The deal will help meet the growing demand for high quality and affordable food in the world. This step is of great importance for strengthening the food security of the European Union and is fully in line with Ukraine’s European integration aspirations to become part of the single European market,” MHP summarized.
UVESA Group was founded in 1964 by a group of veterinarians who acquired the Piensos Uve feed mill (Tudela, Navarra province). Between 1972 and 1984, the group expanded its assets to three feed mills, and in 1985 acquired its own slaughterhouse. In 2001, it opened a poultry factory with slaughter and processing facilities in Málaga, in 2008 a new poultry processing plant and in 2016 a poultry hatchery in Navarre. In 2017, Prado Vega and Saconda merged to become Uvesa Cuellar Uvesa Catarroja. By 2020, the company owned 600 integrated farms and launched the production and export of raw sausage under the Alpico brand, as well as a line of halal meat products under the Basmahal brand.
“MHP is the largest chicken producer in Ukraine. The company produces cereals, sunflower oil, and processed meat products.
As reported, the company received $142 million in net profit in 2023 compared to $231 million in net loss a year earlier. The group’s revenue last year increased by 14% to $3.021 billion.
In the third quarter of this year, MHP earned $96 million in net profit, which is 75% higher than in the third quarter of 2023, while revenue increased by 5% to $773 million, gross profit grew by 47% to $249 million, operating profit by 62% to $154 million, and adjusted EBITDA by 56% to $173 million.
