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EBRD supports Sokolow, one of the leading meat processors in Poland
The European Bank for Reconstruction and Development is investing €12.5 million in Sokolow S.A., a leading meat processing company in Poland, to finance new equipment for poultry processing and expansion into export markets.
The deal includes a €5 million loan and up to €7.5 million equity investment. The transaction will allow the Swedish Farmers Association, or Lantdrukarnas Ekonomi aktiebolag, to free up resources for new developments and expansion in central and eastern Europe.
Hans Christian Jacobsen, the EBRD's Director of Agribusiness, said the Sokolow investment aims to promote restructuring, competent management, sound corporate governance and business conduct not only in meat processing, but in the Polish agribusiness sector generally. "The strong operational restructuring of Sokolow also acts as an example to others in the industry for the need for efficiency," he added.
Leif Zetterberg, Managing Director of the LRF said: "We are pleased to have the EBRD as an important regional partner as we promote cooperation internationally with the Swedish farmers."
The transaction will support Sokolow's primary objective of strengthening its position as one of the dominant meat producers in Poland, as well as assisting Sokolow's restructuring effort amid the ongoing consolidation of the Polish meat sector.
Sokolow is one of the largest agribusiness companies in Poland, with products including smoked and canned meats, salami, sausages and ham. As a result of recent mergers, the Sokolow group includes five meat-processing plants, all of which meet the highest technical standards in the industry.
Lantbrukarnas Ekonomi aktiebolag represents most agricultural activities in Sweden. It has been active in promoting Swedish partnerships in the Central and Eastern Europe through investments in agribusiness companies in the region.
The EBRD has now signed 143 investments in the agribusiness sector totalling more than €2.4 billion.
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