LDC, France’s largest poultry processor, and Saudi food group Al-Munajem will acquire production sites of Brittany-based Doux, a French court decided on Friday, safeguarding most of the nearly 1,200 jobs at the insolvent firm.
Poultry firm Doux has struggled to compete against cheaper Brazilian chicken in its main Middle Eastern markets in recent years after the scrapping of European Union export subsidies.
Its main shareholder, French agricultural cooperative Terrena, decided to seek buyers after Doux lost around 35 million euros in each of the past two years.
Under the proposals backed by the business court in Rennes, Al-Munajem, which was a client and minority shareholder of Doux, will take over a site supplying Doux’s traditional frozen chicken exports.
LDC will take over a facility that makes processed food products, and plans to develop a new site to supply poultry to food industry and restaurant sectors in France.
The offers, which include a commitment by LDC to rehire workers from a Doux factory not being acquired, will secure up to 912 jobs, the French economy ministry said in a statement.
LDC said it will invest 60 million euros in the assets it is acquiring, mostly the planned new factory.
LDC and Al-Munajem have also agreed to form a joint company with Terrena and local partners including the regional authority in Brittany to provide supplies for poultry farmers in northwest France who work with Doux.
The court preferred LDC and Al-Munajem’s offers to a proposal by MHP, a leading poultry producer in Ukraine.
MHP had said it would invest 76 million euros and also develop a new site but its plan maintained fewer jobs.
Doux had been placed under court protection last month under accelerated insolvency proceedings to help secure a buyer.
By Pierre-Henri Allain and Gus Trompiz
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.