Home > Investor Relations > Press Releases > Press Release
PRESS RELEASE
TerBeke-Pluma strengthens its Processed Meats position in the Netherlands
through Strategic Acquisition
Waarschoot, 17 September 2007
On 14 September 2007, TerBeke-Pluma, the processed meats division of the Ter Beke group, took over Dutch company BERKHOUT VERSSNIJLIJN, one of the largest processed meats slicing and prepacking firms in the Netherlands. Through this acquisition, TerBeke-Pluma is strengthening its position in the Netherlands, becoming the 2nd largest processed meats slicer and prepacker in Europe.
Summary
On 14 September 2007, TerBeke-Pluma acquired 100% of the shares in Berkhout Verssnijlijn (“Berkhout”) from the founder, Mr. H.J. Berkhout, and from the management, Messrs. Gerrit Eikelboom and Wilco Poppeliers.
Berkhout was founded in 1988 and expanded to become one of the largest Dutch companies for slicing and prepacking of processed meat products for the self-service channel. The company has two sites, one in Ridderkerk and one in Hendrik Ido Ambacht, both near Rotterdam.
The lack of a family successor and the rapid growth requiring investments that can be met more readily by a strong group brought TerBeke-Pluma and the Berkhout shareholders together.
The management has committed to a long-term contract, which was tied to part of the price for the transaction. Berkhout's turnover in 2007 will be approximately 42 million euro with 160 employees, and will immediately contribute to the results of the group.
Strategic importance of the transaction
This transaction further strengthens Ter Beke's Benelux position in processed meat products, one of its two core businesses (besides fresh ready meals). The acquisition is strategically important for various reasons:
- The market for prepacked meat products in the self-service channel continues to grow strongly in all European countries. Prepacked meat products have acquired a dominant position in the self-service channel compared with over-the-counter products;
- In the Netherlands, where prepacked meat products account for 92% of the total market, there is a fast-growing trend for supermarkets to switch from their own slicing and packaging at the point of sale to sourcing from specialist companies, which offer high quality technical fresh food concepts within an extensive and innovative product range.
- Berkhout is largely complementary to Langeveld/Sleegers (Nijmegen), which was taken over in 2005, in terms of customers and technology, which means that an even more comprehensive service can be offered to retailers;
- Through the acquisition of a service specialist without own meat production, Ter Beke strengthens its position in a growth segment of the processed meats market in a way that further reduces its relative dependence on raw materials prices;
- The acquisition of Berkhout makes TerBeke-Pluma the 2nd largest supplier of sliced and prepacked meat products in Europe, which means that synergies can be expected in the procurement of capital goods.
Ter Beke's position in the Netherlands
Ter Beke has been operating in the Dutch market since 1972. As result of the acquisition of Langeveld/Sleegers in 2005, the merger with Pluma in 2006 and the take-over of Berkhout in 2007, the Netherlands has become one of the largest markets for the group's processed meat products.
Ter Beke realized a turnover of approximately 86 million euro in the Netherlands in 2006 (including ready meals). This included 9 months' sales by Pluma. On a full-year basis, the group forecasts turnover of more than 135 million euro in the Netherlands following the Berkhout take-over.
Price and financial impact
The acquisition price for the shares amounts to 9.5 million euro, which will be paid after a number of customary conditions precedent imposed on the transaction will have been met. In addition, a net financial debt of approximately 3 million euro is taken over.
A potential additional purchase price is foreseen which can be paid in the course of 2008 and 2009. This additional purchase price is linked to achieving agreed financial (EBITDA) and other targets.
Berkhout’s equity amounted to approximately 1.9 million euro on 30 June 2007 on a balance sheet total of 9 million euro, of which the tangible fixed assets constituted approximately 4.1 million euro. The 2006 turnover was 35.1 million euro, and a growth of 20% is forecasted for 2007, which should result in a turnover of approximately 42 million euro. Berkhout's profitability is comparable with that of Ter Beke, which means that the acquisition will contribute immediately to the consolidated results. The effect on the net result for 2007 can remain limited due to a number of one-off IFRS modifications. Further financial information will be provided when Ter Beke announces its annual results for 2007.
If all the conditions precedent are met, Berkhout will be included in the consolidation circle of Ter Beke with effect from 1 September 2007.
For further information, please contact:
| Media Luc De Bruyckere Chairman Telephone: +32 (0)9 370 13 00 E-mail: luc.debruyckere@terbeke.be |
Investor Relations René Stevens CFO Telephone: +32 (0)9 370 13 45 E-mail: rene.stevens@terbeke.be |
TER BEKE IN BRIEF (after the take-over)
Ter Beke (Euronext Brussels: TERB) is an innovative Belgian fresh food group
which markets its assortment in 10 European countries. The group has 2 core
businesses: processed meats and fresh ready meals, possesses 11 industrial
establishments in Belgium, the Netherlands and France and counts about 1,850
people. In 2006, Ter Beke recorded a turnover of 326 million Euro.
Processed Meats Division: Ter Beke-Pluma NV
- producer of processed meats for the Benelux, Germany and the United Kingdom
- 5 production sites in Belgium (Wommelgem, Waarschoot, Marche-en-Famenne, Herstal and Ruiselede) and 5 centres for slicing and packaging of processed meats, including 2 in Belgium (Wommelgem and Veurne) and 3 in the Netherlands (Milsbeek, Ridderkerk and Hendrik Ido Ambacht)
- innovative in the segment of pre-packed processed meats
- distribution brands and own brand names L´Ardennaise, Daniël Coopman and Pluma
- about 1050 employees
Ready Meals Division: FreshMeals NV
- producer of fresh ready meals for the European market
- Europe market leader in fresh lasagne
- 3 production sites, including 2 in Belgium (Wanze and Marche-en-Famenne) and 1 in France (Alby-sur-Chéran)
- brand names Come a Casa, Pronto and Vamos along distribution brands
- approximately 800 employees