January 10, 2014
Charoen Pokphand Foods (CPF) announced the takeover of Belgian portions producer Tops Foods for €9 million (US$12.3 million).
CPF EU, an indirect subsidiary of CP Foods, moved to purchase 80% of Tops Foods' total shares at a price of €1.635 (US$2.23) per share. After the acquisition, Tops Foods will become a subsidiary of CP Foods, the latter said in a notice to the Thai stock exchange.
Tops Foods, incorporated in Belgium in 1993, produces and distributes chilled and ambient ready-to-eat foods using microwave system production technology. Its current capacity is 100,000 trays per day.
In 2012, Top Foods achieved turnover of €12 million (US$16 million) and gross profit €6.3 million (US$8.6 million), making a net loss of €200,000 (US$272,000). In 2011 its net result was the same, while in 2010 it broke even exactly, according to figures supplied by CP Foods.
CP Foods also announced the establishment of four new subsidiaries: Henan Chia Tai Agro-Industrial Financing Guarantee; Jiangsu Chia Tai Agriculture Financing Guarantee; as well as feed producers and distributors Dali Chia Tai Co and Wuxuan Chia Tai Animal Husbandry Co.
In order to expand the capacity of its feed, farm and food businesses, CP Foods plans to invest THB50 billion (US$1.6 billion) during 2014-16, it said.
The firm is aiming for revenue growth of 15% in 2014 from its THB380-390 billion (US$517-531 billion) in 2013, which is below target due to the impact of shrimp disease at its farm operations, chief executive Adirek Sripratak told reporters.