Let the gains begin

The companies were bought for zł.95 million and zł.27.5 million, respectively. "These acquisitions fit the group perfectly and will contribute to its growth," said PKM Duda's president, Maciej Duda.

The takeovers will considerably strengthen the company. The two acquired firms had total revenues of zł.494 million last year. Duda's sales revenue this year is expected to reach zł.1 billion.

The purchase of ZMB, the largest cattle-slaughter company in Poland, will make Duda the market leader in beef production. It already has the top spot on the pork market. "By acquiring ZMB we will double our power," the company's vice president, Roman Miler, said. The takeover will also help Duda boost its exports as ZMB's production is primarily for export. Duda had planned to increase its exports from the current level of 17 percent to 25 percent of sales. "We will achieve a far more satisfactory result," Miler said.

Through its acquisition of Stół Polski, PKM Duda will acquire two meat-processing plants and four distribution centers. Two of these are in Warsaw, where Stół Polski was the main competitor to PKM Duda's distribution company Makton. "Now we will have a dominant position on this rich market," Duda said. The acquisition of the two processing plants also means that the meat concern will now be present in all stages of meat production. The president also hinted that PKM's three distribution companies (the third one being Fedrus) could be merged in the future.

PKM Duda also has big plans regarding Ukraine, where it wants to build "a second Duda." The company is currently holding talks with three large beef producers there. "In December we will sign an agreement with a large player," Duda revealed. The Polish company plans to invest up to zł.100 million in its eastern neighbor.