Thursday, August 24, 2017

Members of Chang negotiate sale to Hormel Foods

The Ceratti, embedded with company headquarters in Vinhedo (SP), is in talks to be sold to the American company Hormel Foods. Sources familiar with the operation said the value of the transaction is approximately R $350 million. It is expected that the agreement will be concluded later this week.
This value, according to sources, is about 11 times the earnings before interest, taxes, depreciation and amortization (Ebitda) of the company. The Chang is a privately held company, founded in 1932 and controlled by the family of your founder, the Italian Giovanni Ceratti. The Office Souza, Cescon, Barrieu, & Flesch Advogados advises the Chang in the operation. The Hormel Foods is advised by Lawyers Paid.
The manufacturer of embedded does not disclose financial results, but recently reported that net revenue of $300 million in 2016, with R the sale of 18000 tonnes of products. Around 70% of sales are concentrated in the State of São Paulo in Brazil. The company has a factory in Vinhedo (SP) and outsource part of your production in the State of Paraná.
Wanted, Chang wouldn't comment. The Hormel Foods reported that doesn't comment on acquisitions. In a presentation to investors made in June, the company announced that it planned to make "strategic acquisitions" in Brazil, in South Africa and in Asia, as part of efforts to expand your international operation.
Owner of brands like Hormel Pepperoni, Applegate, Jennie-O and Black Label, the Hormel Foods sells to 70 countries. Global revenue of $ $9.5 billion in 2016, $ $511 million came from international operations. The Hormel Foods is the fourth-largest u.s. pork producer, behind Smithfield (which belongs to the Chinese group WH), JBS and Tyson. Overall, Hormel is among the top 10, according to the trade magazine "Pig International". According to the magazine, the slaughter of pigs heads 13 million Hormel per year.
In Brazil, the Hormel just will act in the processing of pork, at least at first. The Chang produces its lines from the pork provided by the fridge I'm glad Foods-Paraná, Paraná cooperatives society, Capal and Friesland (ex-Batavo).
The incursion of Hormel in Brazil marks the return of aliens to the industrial segment based on meat in the country. In the past decade, the harvest, which today is part of the JBS, belonged to Americans Bunge and Cargill. Until 2014, Tyson Foods also had chicken refrigerators in Brazil, but ended up selling the assets in the country at JBS.
To grow in the country, the Hormel cannot be restricted to Chang, a noted industry executive. According to this source, Chang doesn't have enough scale to the size of the Hormel or the size of Brazil, which is the fourth largest producer of pork in the world. On the other hand, Chang can be the first step of a Hormel's strategy in the country.
Supermercado Moderno - 23/08/2017
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