09/26/2018 | Press release | Distributed by Public on 09/26/2018 03:24
MHP Seeking to Acquire Perutnina Ptuj
Kiev, Ukraine, 26th September 2018 - MHP SE (LSE: MHPC),one of the leading international agro-industrial groups, following the announcement from the Bundeswettbewerbsbehörde (Federal Competition Authority of Austria, https://www.bwb.gv.at/en/)confirms it is seeking to acquire Perutnina Ptuj, a well-established and vertically integrated company in Southeast Europe.
MHP is a vertically integrated companyand a leading poultry producer in Ukraine with cutting facilities in the EU (the Netherlands and Slovakia) and a sales and distribution office in MENA (UAE). MHP sells around 60% of its poultry products domestically and around 40% to over 60 countries across the world. Being one the most efficient producers in the industry worldwide enables the Company to control the risks and quality of goods at every level of the production process. This ensures all the Company's standards and management of the processes are in line with Ukrainian legislation and current EU guidelines. A key part of MHP's success to date has been an intensive CAPEX programme (around US$1.75 billion invested during the last 10 years into green-field projects), a strong and experienced management team, and an integrated business model.
MHP is undertaking a strategic step with this expansion, which will add value to the Company and strengthen its position as a global player, while Perutnina Ptuj is obtaining a strategic long-term investor. Perutnina Ptuj has a strong brand and significant share of poultry value-added products, which MHP is ready to support over the coming years through investment and further development.
Together with a highly experienced management team, MHP commits itself to improve the quality of the Perutnina Ptuj's production base to meet the highest EU standards. This cooperation will bring direct benefits to local farmers and employees as well as have a positive impact on the poultry industry in the Balkan's region in general.
Notes to Editors
For more information please contact:
Burson Cohn & Wolfe
+44 (0) 7342 066943
MHP - Director of IR and International Communications
MHP is the leading producer of poultry products in Ukraine with the greatest market share and highest brand recognition for its products. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales (including through MHP's franchise outlets). Vertical integration reduces MHP's dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale.
To support its sales, MHP maintains a distribution network consisting of 11 distribution and logistical centres, within major Ukrainian cities. MHP uses its trucks for the distribution of its products, which Management believes reduces overall transportation costs and delivery times. MHP also has a leading grain cultivation business growing corn to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.
Since May 15, 2008, MHP has traded on the London Stock Exchange under the ticker symbol MHPC.
+44 07342 066943