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LDC, Al-Munajem to acquire French poultry firm Doux's assets

FBR Staff Writer Published 21 May 2018

LDC, a French poultry processor alongside Al-Munajem, a Saudi food company, will buy production sites of the bankrupt France-based poultry producer Doux.

The LDC consortium was chosen by a French commercial court, a ruling that is expected to save almost all the 1,200 jobs at the insolvent French firm, reported Reuters.

Based in Brittany, Doux was put under court protection in April under accelerated insolvency proceedings to help get a buyer for the ailing business which had seen losses of about €70m in the last two years. Its main stakeholder is Terrena, a French agricultural cooperative which has been seeking buyers following the mounting losses.

As per the proposals endorsed by the French commercial court based in Rennes, Al-Munajem, will buy a facility that supplies the traditional frozen chicken exports of Doux. Al-Munajem is already a minority shareholder in Doux.

LDC, which is considered to be among the largest poultry companies in France, will buy a Doux facility that manufactures processed food products. The company is also looking to develop a new facility to supply poultry to food industry and restaurants across France.

LDC had also made a commitment to recruit workers from a Doux factory which is not part of the acquisition. This move will help save up to 912 jobs according to the French economy ministry.

LDC will invest €60m in the assets it will be buying from Doux and also on the new factory it is planning to establish.

In another development, LDC and Al-Munajem will create a joint venture with Terrena and local partners such as the regional authority in Brittany. The joint company will deliver supplies for poultry farmers across northwest France who are associated with Doux.

The Rennes court selected LDC and Al-Munajem ahead of Ukranian poultry producer MHP, which also bid for the assets of Doux.

MHP had committed to an investment of €76m and also for building a new facility. However, its plan would have safeguarded lesser jobs than the proposals made by LDC and Al-Munajem.

Image: Saudi food company Al-Munajem will buy a frozen chicken export facility from Doux. Photo: courtesy of AlMunajem.