November 13, 2013

Saudi Arabia's Almunajem to acquire minority stake in France's Doux

Saudia Arabia's food distributor, Almunajem, will take a minority stake in French poultry group Doux, who is set to sign a rescue deal in the next few days, a moment of rare good news for a French meat industry shaken by plant closures.

According to TradeArabia, the deal would see D&P, a family-owned investment firm led by Didier Calmels, take 52.5% of Doux, with Almunajem and the Doux family taking the rest.

Since Doux went into court administration in 2012 in the face of mounting debts, the north western region of Brittany, the heartland of France's pork and poultry businesses, has endured a series of plant closures. The poultry group laid off about 1,000 workers last year but still employs 2,400 people.

Agriculture Minister Stephane Le Foll said French public investment bank BPI could help raise up to €10 million (US$13 million) a year to allow Doux to invest and modernise.

"There is a shareholders' agreement about to be put together between the buyer, the Calmels family, the historical owner the Doux family, and the Saudi Almunajem, which is a manufacturer but has also been working with Doux for 40 years in the Middle East market," the minister said.