Tag: CTB Inc.

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CTB

CTB to have Strong Growth in Poultry Processing

(BRK.A), (BRK.B)

Berkshire Hathaway’s CTB, Inc. is projected to have strong growth in its sales of poultry processing equipment.

According to a report published on marketsandmarkets.com, the poultry processing equipment market is projected to reach USD 3.83 Billion by 2020, at a CAGR of 4.7% from 2015 to 2020.

The report “Poultry Processing Equipment Market by Type (Chicken, Turkey, Ducks), Equipment Type (Killing & Defeathering, Evisceration, Cut-ups, Deboning & Skinning, Marinating & Tumbling), Product Type, & by Region – Global Forecast to 2020,” notes that “increased consumption of processed food, the government support for the use of equipment in developing countries, the demand for food safety, safety of workers, environment and sustainability, the presence of small and medium enterprises in developing countries, rising raw material costs, and international trade rules are the major drivers for the poultry processing equipment market.”

In 2016, CTB acquired the majority share in Danish company Cabinplant A/S. The acquisition added additional poultry processing equipment to CTB’s existing line of Meyn processing equipment for poultry, as well as processing solutions for fish and shellfish, fruit and vegetables, and convenience foods.

“Market requirements are constantly increasing,” states Erik Blom, Managing Director of Meyn Food Processing Technology, “and we will keep investing in intelligent solutions according to different international standards.” With three production sites in Oostzaan/The Netherlands, Poland and the United States as well as offices all over the world, Meyn is in close cooperation and communication with their clients in over 100 countries and prepared to answer the challenges of the future.

© 2017 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.

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Acquisitions CTB

CTB Acquires Volito Group B.V.

(BRK.A), (BRK.B)

Do you want chicken or fish? Whether you are picking an airline meal, or the entrée at your favorite restaurant, Berkshire Hathaway is very likely to be involved in bringing it to you.

Just days after Berkshire Hathaway’s CTB, Inc. finalized the purchase of a majority share in Cabinplant A/S, one of the world’s leading manufacturers of processing equipment for vegetables and fish, CTB has announced that it has acquired the Volito Group B.V., a designer and manufacturer of cage-free layer housing systems.

Volito has three locations in the Netherlands, including its headquarters in Veenendaal and manufacturing plants in Dodewaard and Amersfoort, all southeast of Amsterdam, and works through a global partner network.

Terms of the transaction were not disclosed.

Volito’s core products include aviary and nest systems for commercial layers (hens which lay eggs for consumption), nest systems for layer breeders (hens which lay hatching eggs) and rearing systems, as well as egg collection equipment, slats and perches. One of the earliest manufacturers of aviary systems, Volito’s cage-free hen housing complements the laying system offerings of CTB’s Chore-Time business unit, which include Chore-Time’s cage and colony systems, its widely used Ultraflo® feeding system, and drinkers, egg collectors and ventilation equipment.

“An early pioneer of aviary systems, Volito brings a long legacy and knowledge base of cage-free systems,” said CTB’s chairman and chief executive officer Victor A. Mancinelli. “Their first designs were installed in Switzerland more than 25 years ago, and their installed base now covers many other European countries as well,” Mancinelli went on to say. “Volito’s products will provide our customers with a complete line of aviary and nest systems through our worldwide Chore-Time distribution network.”

Volito was founded in 1989 based on the vision that aviary systems were the future, even outside Switzerland. Since then, the company has successfully installed and is servicing thousands of poultry houses with aviary systems and/or nest systems. In recent years, the company added new ranges of aviary systems, including Valego, an advanced and patented nest system for layers and breeders.

Commenting on the acquisition, Hans Donker, general manager of Volito, stated, “We are pleased that Volito will now have the resources and backing of CTB to extend its reach into additional market areas. CTB is a strong partner and will also benefit from Volito’s expertise. Our long history with cage-free technology should be welcomed by Chore-Time’s customers seeking cage-free options.”

© 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.

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Acquisitions CTB

CTB Completes Purchase of Majority Share in Denmark-Based Cabinplant

(BRK.A), (BRK.B)

Berkshire Hathaway’s CTB, Inc. has finalized the purchase of a majority share in Cabinplant A/S, one of the world’s leading manufacturers of processing equipment for vegetables and fish.

Cabinplant’s poultry processing equipment complements that made by CTB’s Meyn poultry processing subsidiary.

The acquisition agreement was originally announced on September 5, 2016. Terms of the transaction were not disclosed.

The acquisition adds tailor-made processing solutions for fish and shellfish, fruit and vegetables, and convenience foods, as well as additional poultry processing equipment to CTB’s existing line of Meyn processing equipment for poultry. Cabinplant’s high-yield processing solutions broaden the range of processing options CTB can offer customers in the food industry.

About CTB

Acquired by Berkshire Hathaway in 2002 for $180 million, CTB is a leading global designer and maker of systems and solutions for storing, conveying and preserving grain; producing poultry, pigs and eggs; and processing poultry, fish, vegetables and other foods.

© 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.

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CTB

CTB Acquires Majority Share in Denmark-Based Cabinplant

(BRK.A), (BRK.B)

Berkshire Hathaway’s wholly-owned CTB, Inc. has signed an agreement for the acquisition of a majority share in Cabinplant A/S, one of the world’s leading manufacturers of processing equipment for vegetables and fish.

Cabinplant’s poultry processing equipment complements that made by CTB’s Meyn poultry processing subsidiary.

Cabinplant A/S has its headquarters in Haarby, Denmark, west of Copenhagen, as well as having subsidiaries in Poland, Germany, Spain and the United States.

Cabinplant employs close to 300 people and has representatives in more than 30 countries worldwide. It also works in close partnership with customers in major markets around the globe. Part of its expertise includes system customization achieved through close collaboration with its customers.

Cabinplant’s systems, which feature high yield and minimal waste, are used by companies that process seafood, fruits and vegetables, poultry and convenience foods.

CTB’s chairman and chief executive officer Victor A. Mancinelli said, “The acquisition helps CTB to broaden the range of poultry processing options it can offer its customers as well as expanding into new market areas for processing, such as seafood and vegetables. Cabinplant’s knowledge of the food industry and its innovative approach to product development and implementation fit very well with CTB’s approach to its core markets.”

Cabinplant was founded in 1969. Company co-owner and chief executive officer Ralf Astrup and co-owner and chief financial officer Jan Helskov Hansen will continue in their current leadership positions. Operations will remain in the existing facilities.

Completion of the transaction is subject to applicable governmental approvals.

© 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.

Categories
Acquisitions

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.