AFGRI Limited, the leading listed South African agricultural services group, has announced that it has entered into an agreement with the Rossouw Group, to acquire the entire business of Rossgro Chickens (Proprietary) Limited, for the purchase price of 228 million rand (ZAR), subject to adjustments.

The transaction with Rossgro Chickens comprises the purchase of the Rossgro abattoir and its assets. The abattoir slaughters and currently processes approximately 350,000 chickens per week.

Commenting on the transaction, Chris Venter, CEO of AFGRI, said: "Purchasing Rossgro Chickens is a strategic move for AFGRI, by increasing our abattoir capacity, we will be able to slaughter, according to our intended goal, more than a million chickens per week." Together with the Midway Chix acquisition announced earlier, the AFGRI Poultry business is now more complete, he added.

The Rossgro abattoir is situated in Delmas eight kilometres from the AFGRI Poultry (previously known as Daybreak Farms) abattoir.

Chris Rossouw, of the Rossouw Group, siad: "The Rossouw Group looks forward to an ongoing relationship with AFGRI, as Rossgro Feeds, Rossouw Farming and Rossouw Poultry will continue to be a supplier to AFGRI."

Mr Venter concluded by saying that AFGRI is pleased with the progress made towards growing the food business.

He explained: "The Rossgro transaction makes AFGRI the fourth largest processor of chicken on a per week basis, making us a more meaningful player in the industry."

Further Reading

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Go to our previous news item on AFGRI by clicking here.