Quantum Foods to acquire LP Buhr Boerdery
Quantum Foods has entered into an agreement to buy the entire shareholding in LP Buhr Boerdery.
Quantum Foods has entered into an agreement to acquire the entire shareholding in LP Buhr Boerdery, which is the owner of the Helderfontein Broiler Farm.
LP Buhr Boerdery is a broiler chickens rearing business based in the Western Cape and has been a contract grower to Quantum Foods for the last 25 years. The transaction was entered into as the owner of the Helderfontein broiler farm goes into retirement. The deal was pursued in order to ensure an uninterrupted broiler supply chain in the Western Cape.
The transaction will ensure that Quantum Foods is able to continue to serve its customer base in the Western Cape and will provide a basis from which to increase volumes in the future. The purchase consideration payable is an amount of R53 million, subject to certain upward adjustments not exceeding an aggregate maximum amount of R3 million, including in relation to the value of stock as at the effective date of the transaction, being 31 January 2021.
The purchase consideration will be settled in two tranches, utilising available cash resources and/or existing financial facilities of the group.