Ricardo Faria Acquires Hillandale Farms for $1.1 Billion, Marks U.S. Expansion
Ricardo Faria, known as the ‘Egg King,’ has acquired Hillandale Farms for $1.1 billion, marking his entry into the U.S. market through Global Eggs. This acquisition is a part of his expansion strategy and is expected to double production output. The deal allows Faria to capitalize on rising egg prices amid a bird flu outbreak affecting U.S. poultry.
Ricardo Faria, a prominent Brazilian entrepreneur known as the ‘Egg King,’ has acquired the American egg producer Hillandale Farms for approximately $1.1 billion. This acquisition, facilitated through his company Global Eggs, marks Faria’s debut in the U.S. market following his purchase of Spain’s Grupo Hevo last November. Hillandale Farms, based in Gettysburg, Pennsylvania and founded in 1958, stands as one of the largest egg producers in the U.S.
Faria’s interest in U.S. egg production is partially driven by the rise in egg prices due to an avian flu outbreak affecting poultry in the country. He expressed, “Americans love eggs. It’s a market with high consumption. Eggs are the fastest-growing consumer good on the shelf or in supermarket trolleys.” Notably, U.S. imports of Brazilian eggs nearly doubled in February amid these market conditions.
The bird flu crisis has led to the loss of nearly 170 million poultry in the U.S. since 2022, prompting the government to ease restrictions on egg imports from countries such as Turkey, South Korea, and Brazil. However, Faria emphasized that his acquisition of Hillandale Farms aligns with his broader international expansion objectives rather than being solely reactive to these market shifts.
With this acquisition, Global Eggs’s production output is expected to double, projecting revenues of approximately $2 billion for 2024. Additionally, the Brazilian investment bank BTG Pactual’s private-equity arm plans to inject $300 million into Global Eggs in exchange for an 11% equity stake. Reports indicate that an initial public offering (IPO) for Global Eggs in New York may soon be pursued. Just Food has sought a statement from Hillandale Farms regarding this transaction.
In summary, Ricardo Faria’s strategic acquisition of Hillandale Farms signifies his entry into the U.S. market and reflects a broadened international expansion strategy for Global Eggs. The deal is expected to enhance production capacity significantly while allowing Faria to capitalize on the growing demand for eggs in the U.S. market despite recent challenges posed by avian flu. Furthermore, attractive investments and a potential IPO for Global Eggs herald promising prospects in the poultry sector. Faria’s ventures signal a notable shift in the global egg production landscape.
Original Source: www.just-food.com
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