Sigma Alimentos, a processed foods subsidiary of Mexican conglomerate Alfa, has offered €675m to take over Spanish meats processor Campofrio.
Campofrio operates a network of manufacturing facilities in eight countries. For the fiscal year ended 30 September 2013, the company reported sales and normalized EBITDA of €1.9bn and €147m, respectively.
Sigma plans to finance the potential acquisition through a fully-committed term loan.
The company indicated that the offer will become effective upon its approval by the Comision Nacional del Mercado de Valores (CNMV) of Spain.
Alfa president Alvaro Fernandez said, "The acquisition of Campofrio is consistent with Sigma's long term growth strategy and gives it the opportunity to expand its current market coverage in the Americas, to become a global leading refrigerated foods player."
Sigma CEO Mario Páez said, "By leveraging on Campofrio's top management, strong brands and European footprint, we can drive further value by accelerating the implementation of the Company's announced strategic plan; achieving economies of scale; implementing best practices across both organizations; introducing both companies products across each other's geographies and capitalizing on the expected improvement in the macroeconomic environment in Europe in the medium term."
In October, Alfa said it was looking at options to launch an initial public offering (IPO) for Sigma Alimentos.
