April 26, 2018
CPF acquires Brazil's leading shrimp producer
Charoen Pokphand Foods PCL (CPF) has recently acquired 40% shares worth US$17.5 million in Camanor Produtos Marinhos Ltda., a leading shrimp farming and processor in Brazil.
The acquisition will further expand CPF's business in a high-growth market.
Adirek Sripratak, CPF's chairman of its executive committee, said the company agreed to purchase a total of 4,666,667 newly-issued ordinary shares representing 40% of total capital stock of Camanor worth US$17.5 million (equivalent to THB547 million). The deal is expected to be completed within one month after the investment agreement was signed.
Camanor engages in shrimp farming and primary processing businesses in Brazil.
The company's main products include fresh and frozen processed shrimp which are distributed through domestic wholesalers and export such as France. It has also developed and owned a shrimp farming technology called AquaScience®, a close operating system that raises shrimp in a high density environment without using chemical or antibiotics, resulting in high productivity per farm area.
"It is the synergy investment which will strengthen CPF's competitiveness in shrimp business in terms of feed production, genetics improvement and shrimp processing capacity through the company's vision "Kitchen of the World" by applying Camanor experiences in shrimp farming technology and CPF expertise in shrimp genetic. " Sripratak said.
He added that the new partnership in Brazil will help CPF to extend businesses including feed and hatchery. The expansion is purposed to serve the shrimp industry and local consumption. Its shrimp total capacity reaches an average of 100,000 tonnes per year which is inadequate to fulfill domestic demand.
Brazil is a major source of agricultural materials required for production of shrimp feed and is also a high potential market with a sizable population and economy. It will also provide geography diversification on CPF's shrimp production operations, the company said.