San Miguel sets sights on Peru
As part of its expansion strategy in the Southern Hemisphere, San Miguel moves forward in the process to purchase the major mandarin producer of Peru.
San Miguel entered into a binding agreement for the purchase of Agrícola Hoja Redonda S.A., the major mandarin producer of Peru. The company –which is part of the holding group Breca– has two operations: in the provinces of Chincha and Chepén, in the regions of Ica and La Libertad, respectively, with a total of 1,708 hectares. In addition to this, it has a packing plant with capacity for 25 tons per hour of citrus and avocado (together with grape, which is other of its products).
The purchase price subscribed in the agreement amounted to USD 64 million for 100% of the shares and voting rights of AHR. The transaction is expected to be closed between August 10 and 20, subject to compliance with the previously agreed conditions. At that time, the price will be paid and the shares will be transferred.
“For the acquisition, part of the funds received during the recent capital increase and funds from the company's current credit facilities will be used,” affirmed Patricio Aguirre Saravia, CFO of San Miguel. Romain Corneille, global CEO of San Miguel, added that this “reaffirms our position as the leading counter-season citrus supplier in the Southern Hemisphere, with volume, quality and varieties that respond to the requirements of the world's most sophisticated markets.”
This investment strengthens San Miguel's strategy in different ways: it will allow complementing the supply by introducing products through the West coast, which will streamline the service to the most important customers; it will add an exit towards the Pacific, thus multiplying the possibilities of supplying the growing Asian market; and it will ensure its presence in 4 of the 6 most important countries in the export of premium quality citrus of the Southern Hemisphere (Argentina, South Africa, Uruguay and Peru) strengthening the company's portfolio and making its offer even more sustainable.