April 18, 2008

Alfesca drops takeover plans

Alfesca has terminated its proposed acquisition of UK ready meals company Oscar Mayer due to inflation of raw material costs.

The rising costs of raw material has impacted the results of the company and caused the trading environment within the ready meals sector in the UK to deteriorate. Given the current market environment, the proposed acquisition is perceived as unprofitable. 

The company, however, will continue to further develop and grow its business.

With the benefit of a strong balance sheet and support of its banking consortium and key shareholders, Alfesca is evaluating new opportunities taking into account current market conditions.

Alfesca is a leading EU producer in its selected categories, which are smoked seafood, regional duck products, shellfish, blini, spreadables, snacks and other ready-to-eat products.