Brazilian Egg Producer Granja Faria Acquires Vitagema

Brazilian Egg Producer Granja Faria Acquires Vitagema
Photo: pexels.com 18.03.2024 409

Deal involving 90% of Vitagema was closed for R$36m.

Egg producer Granja Faria signed an agreement to acquire DPB Avicultura, known as Vitagema, in a R$36 million deal. The deal is part of a nationwide expansion strategy and broadens the company’s operations in the Northeast region.

As a result, Faria will take over 90% of Vitagema, as well as the land where its farm is based. The payment will discount Vitagema’s net debt, being adjusted to R$34.86 million. Of this amount, R$13.5 million will be paid in cash and the remainder in monthly installments, according to a note released by Grupo Faria.

✔️ Granja Faria is the biggest egg producer in Brazil with a total of 3.7 million housed birds. The company owns 12 hatching egg farms, 11 production farms of table eggs and 5 egg factories. Granja Faria has been exporting for more than 18 countries.

✔️ Vitagema has almost 20 years of history in the Rio Grande do Norte state, and is one of the leaders in the segment in the Northeast region, producing chicken eggs and quail eggs. In 2023, it posted a net revenue of nearly R$51 million, with a gross margin of 22.3% and more than 100 million eggs produced.

Vitagema’s farm has around 400,000 birds and, according to the note, should start an expansion plan in the coming months to increase its capacity to 1 million birds.

“The company now reaches a state where it did not have production units, aiming to benefit from the competitive advantages and reputation of Vitagema in the local market, together with the implementation of its business and management model, enhancing its results,” 

Granja Faria stated.

Earlier this year, Granja Faria invested R$60 million in the expansion of BL Ovos, acquired last year.

Source: Valor International

food markets  Brazil 

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