Nutreco to sell Pingo Poultry to Plukon Royale

28/06/05 Nutreco Holding N.V. and Plukon Royale B.V., part of Royal Cebeco Group U.A., has announced that they have reached agreement in principle on the sale of Nutreco’s Pingo Poultry processing businesses to Plukon Royale.

The fixed selling price is EUR 31 million, which is EUR 11 million below book-value. In addition to this selling price, the parties have agreed an earn-out over the coming three years.

Pingo Poultry specialises in fresh pre-packed products for retail customers and fresh and frozen poultry meat for the food industry. In 2004 its processing revenues totalled EUR 190 million. Pingo Poultry has two sites, Goor and Mierlo in the Netherlands and one in Maasmechelen in Belgium, with approximately 1,000 employees between them. The company staff will be transferred to Plukon Royale.

The transaction is subject to approval from the relevant competition authorities and approval from and consultation with works councils and trade unions.

The sale of Pingo Poultry’s processing business fits within Nutreco’s previously announced strategy ‘Rebalancing for Growth’. This strategy puts a clear focus on the growth of Nutreco’s animal nutrition and fish feed business and the reduction of financial exposure to the earnings volatility of its food businesses. Nutreco’s fully integrated Sada poultry processing business, which holds a strong position on the Spanish market, will remain a strategic part of the Nutreco group.