Genus Plc, a leading global animal genetics company, announced Sept. 23 the acquisition of Genetiporc, the porcine genetics business of Aliments Breton Foods Group, the largest producer and processor of organic and natural pork in North America.
Genetiporc is based in Canada and has operations in the U.S. 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 £24.8 million.
Genus said it will acquire the U.S. and Mexican Genetiporc 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 (£18.8m) in cash, which will be financed from existing facilities. These acquisitions also include assumption of debt of $5.6 million (£3.5m) which will be repaid at, or shortly after, closing. The closing is subject, among 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% owned joint venture in Brazil, has signed a memorandum of understanding with the shareholders of Genetiporc do Brazil to acquire it for 18.5 million real (£5.2m), 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.
"The acquisition of Genetiporc 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 urbanized global population," Genus chief executive Karim Bitar said.