CTB Reaches Overseas to Acquire Manufacturer

(BRK.A), (BRK.B)

Berkshire Hathaway’s CTB, Inc., a manufacturer and marketer of systems and solutions for preserving grain; producing poultry, pigs and eggs; processing poultry; and for various equestrian and industrial applications, has reached overseas and acquired Holding Hamon Développement.

The French company is a designer and manufacturer of buildings for poultry keeping, processing plants and industry, and parent company of Serupa SAS and Mafrel SAS.

The company has its headquarters in Merdrignac, France, west of Rennes.

Terms of the transaction were not disclosed.

The two companies focus on an integrated offering of poultry buildings and equipment to ensure a seamless experience for the customer.

Serupa is a turnkey designer and manufacturer of poultry buildings as well as buildings used for meat processing plants and other industries.

Mafrel is a supplier of building kits and poultry equipment such as that supplied by CTB’s Roxell, Fancom and Chore-Time business units.

The acquisition includes the companies’ facilities in Merdrignac comprising 16,500 square meters (177,600 square feet).

Serupa and Mafrel together employ approximately 100 people. CTB does not anticipate a change in employment levels as a result of the acquisition. Serupa and Mafrel look forward to continuing their relationships with their preferred suppliers.

Victor A. Mancinelli, CTB chairman and chief executive officer, noted that the acquisition further broadens CTB’s offering to the poultry industry with another industry-leading company.

“Serupa’s poultry building quality is highly respected, as are CTB’s poultry production and poultry processing equipment brands,” said Mancinelli. “In fact, CTB’s Roxell subsidiary is already a supplier to Serupa.”

“The acquisition presents opportunities for CTB equipment brands to strengthen their positions by providing turnkey solutions to their global customers, and, in addition, enhances the overall CTB position in the important French-speaking markets where Serupa already has a strong customer base,” continued Mancinelli. “Serupa has significant expertise in turnkey supply, building design, integration of buildings with environmental packages and supply of aviary systems,” Mancinelli concluded.

Serupa was founded in 1974 by Bernard Hamon. The company has most recently been led by his sons Jean-François Hamon and Patrice Hamon. Philippe Vernet joined the firm as deputy managing director in 2014. After the acquisition, Mr. Vernet will become President of the companies, and Jean-François Hamon will stay on in a support and transition role. Operations will continue in the existing facilities in France.

Commenting on the acquisition, Jean-François Hamon said, “Patrice and I are pleased to see Serupa and Mafrel be incorporated into the CTB group of companies. We see great opportunities for Serupa to grow its market by including more products from CTB’s business units and by expanding to additional markets where the CTB companies already have a strong presence.”

Vernet added, “Serupa’s products complement CTB’s for customers in the poultry raising and processing sectors. Joining the CTB group of companies will enable Serupa to benefit from CTB’s worldwide network of distributors as well as offering Serupa’s employees the opportunity for international career development.”

© 2016 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.