May 22, 2014
CP Indonesia acquires Sierad for US$40 million
PT Charoen Pokphand Jaya Farm, a company controlled by PT Charoen Pokphand Indonesia Tbk., has acquired the assets of PT Sierad Produce Tbk. for US$40 million, Bisnis Indonesia reports.
The transaction object was made up of fixed assets in the form of several lots of land and buildings as well as supporting facilities on the land, including machinery and equipments.
Inventory and breeding flocks which were owned by Sierad in its business activity of poultry farms also became the object of the transaction.
"The purpose of these transactions is to increase the capacity of the poultry farm that becomes our business activity," wrote Hadijanto Kartika, Charoen Pokphand Group Corporate Secretary in the disclosure of the asset purchase agreement.
For the year ending 31 December 2013, Charoen Pokphand Indonesia posted sales of US$2.25 billion from its three main business areas - poultry feed, day old chicks and processed chicken products- an increase of 20.4% over the previous year. Although this reflected a new record in terms of sales and gross profit, the company's net income decreased by 5.7% to US$222 million from US$235 million in the previous year, due to the 26.1% depreciation of the rupiah.