Clearwater International advises Sofiproteol on its alliance with LDC
Clearwater International has advised Sofiprotéol on its envisaged alliance with LDC in order to strengthen their respective positions in animal nutrition and productions, and in the poultry sector.
Sofiprotéol and LDC, two of the main players in the French agro-food industry, in a context of increased competition on the European market, have plans to develop an efficient French poultry sector with international ambition by leveraging on their know-how, operational expertise and innovation capacity.
The aim of this alliance is to win back the domestic poultry market by developing French productions and then reduce the share of imports, strengthen the position of LDC as a major player in the European poultry market as well as Sanders’position, subsidiary of Sofiprotéol, in the field of animal nutrition and productions and jointly expand internationally.
This alliance between LDC and Sofiprotéol is reflected in Britany by the sale to LDC of poultry slaughtering and processed product operations of Sofiprotéol animal division, gathering 5 production sites for a turnover of €310m and a workforce of nearly 1,000 people. The acquisition by LDC of Blancafort site is also planned, the partnership between these two players will trigger a new dynamic to the poultry industry in the Centre region. More than €100m will be invested within the 5 next years on all concerned sites.
Meanwhile, the alliance will include a preferred partnership between Sanders and LDC for poultry supply. Sanders plans €75m of industrial investment in its animal nutrition and production sites within the 5 next years.
Finally, it is anticipated Sofiprotéol Group’s entrance in LDC Group’s share capital through a marginal participation, granting them a seat on the Supervisory Board.