ARGENTINE

Grupo Vall Companys complements its international presence with a strategic alliance with Grupo Pacuca

Pork

The Vall Companys agri-food group continues to expand its international presence, now with a strategic alliance in the pork sector with the Pacuca Group in Argentina. This agreement between the two leading companies involves a $14 million participatory loan from the Vall Companys group.

Posted on May 20 ,00:25

Grupo Vall Companys complements its international presence with a strategic alliance with Grupo Pacuca

This tool will optimize Grupo Pacuca's operations and enable the Spanish company to acquire a stake in the company within two years. Grupo Vall Companys' shareholding in Pacuca will then be determined based on the value of the Argentine company. 

The Pacuca Group's business conglomerate encompasses various operations that integrate the entire pork value chain: feed manufacturing (50,000 tons/year), livestock production (7,000 sows and 85,000 fattening pigs), and the slaughter and processing plant for Selected Pork (capacity of 2,000 animals/day). It also owns the Cabaña Argentina brand of fresh pork and processed pork products, which operates seven retail stores.

The Argentine group, one of the country's largest pork processors, has over three decades of experience in the pork sector. It directly employs more than 500 people and has recently made a significant commitment to sustainability and renewable energy with its own biogas plant, utilizing pork byproducts from its operations. With this acquisition, Pacuca will contribute its local livestock production expertise, while Grupo Vall Companys will contribute its industrial know-how. This transaction complements Grupo Vall Companys' internationalization strategy, which began in 2016. Currently, Grupo Vall Companys has a presence in various Latin American companies, mostly as a minority investor, in Mexico, Colombia, Peru, Uruguay, Brazil, and Chile (through its Brazilian subsidiary). 

For the Vall Companys Group, international diversification is key to boosting business in such a rapidly changing global environment. It also allows them to diversify risks at the local level and minimize their exposure. “This alliance is crucial for both companies; it will allow us to maximize production operations to meet market demands both nationally and internationally ,” stated Tomás Blasco, Head of International Projects at the Vall Companys Group.

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