Jamaica Broilers Group Limited announced that they entered into an agreement on July 17, 2013, to acquire a leading producer and broker of broiler hatching eggs in the United States of America. This acquisition, if concluded, is expected to result in the doubling of the company’s fertile egg production output in the United States.
Completion of the acquisition, which is subject to certain conditions, is expected to be within forty-five (45) days. Under the terms of the transaction, the purchase price is to remain confidential until completion a release from the company said.
Jamaica Broilers, which is a Jamaican company, stated in its 2013 annual report that revenues from its external customers in other countries was J$2.23 billion and in 2012 just over J$1 billion. All of this income would not be related to eggs and this provides some information as to the likely contributions to revenue from the acquisition candidate. It is likely to bring about economies of scale as certain activities can be merged thus leading to cost reduction.
Jamaica Boilers is one of our Buy Rated stock.
[…] | The quarterly results do not include revenue and profit from the just concluded acquisition of England Farms Company, a well-established fertile egg operation based in Arkansas. While this company operates in a […]