Sigma Europa, a subsidiary of Alfa, has signed an agreement with Grupo Vall Companys to restructure its fresh meats business and enhance profitability. The alliance aims to optimize pork processing and ensure a stable supply. The deal is subject to approval by Spanish authorities.
Alfa announced that Sigma Europa signed an agreement with Grupo Vall Companys to boost its fresh meats business and improve profitability. This restructuring aims to increase the utilization of pork processing facilities, strengthen the pork supply, and ensure traceability.
The agreement consists of two main parts and is subject to registration and approval by Spanish competition authorities. In the first part, a strategic alliance is established through which Grupo Vall Companys will acquire 75 percent of Sigma Europa's pork processing business serving industrial clients. Sigma Europa will retain 100 percent of its ready-for-sale fresh meat business targeted at retail clients, operating under its subsidiary Campofrío Frescos.
In the second part, the pork farm “Agroalimentaria Chico”, owned by Grupo Vall Companys, will integrate into the current joint venture “Desarrollos Porcinos Castilla y León”, where Sigma Europa holds a 42 percent stake. Sigma Europa commits to providing the necessary investment to maintain its 42 percent participation in the combined entity.
Rodrigo Fernández, CEO of Sigma, stated: “we are focused on strengthening the fundamentals of our operations in Europe through strategic and disciplined actions. By partnering with Grupo Vall Companys, we will optimize our Fresh Meats business ensuring a stable and traceable pork supply”. He added that this operation improves profitability, allows full focus on retail brand offerings, and supports the broader goal of creating sustainable long-term value in the region.
The net nominal investment for Sigma Europa amounts to less than 20 million euros to be disbursed over a five-year period after the possible closing of the operation, subject to meeting certain operational performance thresholds. Sigma Europa estimates that the cash benefits from the agreement will exceed 10 million euros per year.