After a year of intense negotiations, the Spanish Calvo Group finalized the acquisition of 80 % of Gomez da Costa, the largest canning group of Brazil and South America. The investment in this first stage of the operation involved USD 50 million and an extension of the Brazilian company’s capital of USD 10 million to settle its complete foreign dept.
The Calvo group is planning to acquire the remaining 20 percent capital from local partners in a second stage, to take place within three years time. The value of this operation has already been agreed upon and is linked to a percentage of the benefits the company had reached.
Gomes da Costa is located in Itajai and is the most important port of Brazil, where the artisanal fleet catching tuna and sardine is situated and south to Sao Paulo. The factory has 1,000 workers and is considered one of the most modern plants of South America, producing one million cans per day. It holds 50% of the domestic market share, between tuna and sardine. The factory will continue supplying the domestic market with its Brazilian product, under the same brands: Gomes de Costa and 88. This acquisition is a great step for the group, because the Brazilian population consists of 180 million, with high consumption and a very important annual growth potential.
With the purchase of Gomez da Costa, the Calvo Group has now reached fifth place in the global ranking market share and expects to increase turnover by 30% in respect to the current financial year, until reaching 350 million Euros in 2005.