February 1, 2008

Colombia's Chocolates Pays US$15.8 million for Panama meat processor

Grupo Nacional de Chocolates (CHOCOLATE.BO), Colombia's largest food company, Thursday said it paid US$15.8 million for Panamanian meat processor Ernesto Berard SA.

Chocolates announced the acquisition on Jan. 23 but did not disclose the price at that time.

Chocolates Chief Executive Carlos Enrique Pidrahita last week said his company wanted to expand in Panama, because the country's fast expansion and higher meat consumption than in Colombia.

Ernesto Berard sold US$11.5 million worth of chorizos, sausages and ham last year, while it booked earnings before interest, taxes, depreciation and amortization, or Ebitda, of US$1.7 million in 2007.

Chocolates will pay the acquisition with its own cash.

The company plans to spend US$250 million in the 2007-2009 period to expand its local plants. Chocolates' shares rose 1 percent to 15,860 Colombian pesos (US$8.18) as of 12:41 a.m. EST, while the stock index was down 0.1 percent.