São Paulo – Private equity fund Mercatto Alimentos, which has Brazilian capital, bought a 40% share of Villa Germania Alimentos, the largest duck meat producer in Brazil, headquartered in the city of Indaial, in the state of Santa Catarina. The company exports between 65% and 70% of production, also to the Arab countries in the Middle East, and with the acquisition changes from a limited company to a stock company. The values involved were not disclosed.
According to Marcondes Aurélio Moser, one of the owners of Villa Germania, the deal was the result of joint interests of Mercatto Investimentos, the manager of the fund, which was seeking new investment in the food sector, and of Villa Germania, which wanted a partner to proceed in its production expansion projects. With the partnership, the company plans to increase the current production of 7,500 ducks slaughtered per day to 25,000 by 2013.
Villa Germânia also produces rabbit and chicken, despite its main focus being duck. The 7,500 birds slaughtered are just ducks, explained Moser. The expansion of production should be developed gradually up to 25,000 birds. By the end of this year, for example, daily production should reach 8,000 ducks. Expansion of capacity, which has already been started by Villa Germania, should take place at the existing unit.
The greater production should allow for the growth of Villa Germânia on the domestic market and also abroad, as well as allowing for a greater product mix. On the international market, Villa Germania sells to Japan, Hong Kong, Angola, the United Arab Emirates, Saudi Arabia, Qatar, Kuwait and Oman. Sporadic exports also go to the Maldives and New Caledonia. In the Middle East, Villa Germânia is responsible for 90% of the supply of duck meat, said Moser.
The poultry farm is halal certified, following Islamic regulations, and the product, according to Moser, is not shipped just to the Arab world, but also to some clients in Japan. "There are Muslims there," he explained. In South America, the company should start exporting to Chile in the near future and is currently negotiating with Peru.
Mercatto
The Mercatto Alimentos fund should actively participate in the company, as one of its senior partners should be on the board. The fund only has Brazilian capital, fully made up, but Mercatto Investimentos does not disclose the value. The company says, however, that it is seeking other investment opportunities in the food sector. Mercatto Investimentos was established in 1998 and also manages other kinds of investment, apart from the fund turned to the food sector.
In June this year, according to Mercatto Investimentos, the organisation managed over 2.7 billion Brazilian reals (US$ 1.5 billion). The company, which has a subsidiary, Mercatto Capital Partners (MCP) and is responsible for Mercatto Alimentos fund, has a team of 38 professionals. Mercatto Investimentos and the subsidiary have offices in Recife, in Pernambuco, Florianópolis, in Santa Catarina, and also in New York, as well as the head office in Rio de Janeiro.
*Translated by Mark Ament
