The French animal health and nutrition company said the purchase of laying hen feed producer, Welgro, confirms its ambitions for growth in Asia.
That complete feed producer, located 100km from Jakarta, is a key player in the layer segment and has a manufacturing facility with 150,000 ton capacity.
The deal will allow InVivo NSA to “consolidate its positions in Indonesia and to benefit from a second key growth driver in South East Asia, in addition to Vietnam,” said Matthieu Leroy, InVivo NSA director of projects, information systems and communication as well as CEO advisor.
He would not be drawn on the financials involved but told us the acquisition balances the complete feed portfolio of InVivo NSA in Indonesia, where it now has a strong presence in nutrition for the laying hen sector, as well as good foothold in the quail egg, aquaculture and equine nutrition markets.
Leroy said the deal will see the Indonesia firm benefit from the French company’s R&D knowledge: “This acquisition will give Welgro the opportunity to diversify its species portfolio in the coming years, building on InVivo NSA expertise.”
And the strategic location of the Welgro operations, he added, will also serve InVivo NSA’s export business in the region.
Growth strategy
InVivo NSA had flagged up Indonesia, as well as Brazil, as being on top of its asset building hit list back in March when it revealed investor backing to the tune of €215m ($235.3m) for its international expansion plans.
Along with Latin America and Africa, Asia is one of the company’s three priority investment areas. It has supported a number of expansion projects in that region in the past two years including a new plant in Indonesia as well as a facility and river loading dock in Vietnam.
And the French group, said Leroy, is also currently considering several acquisitions in other parts of Asia including China, Vietnam and the Philippines.
InVivo NSA has been on the asset trail in the past few years. In September 2014, it bought Swiss feed ingredients firm, Pancosma, and the group also acquired Brazilian animal nutrition producer, Total Alimentos, in October that year saying the move would strengthen its position in pet food but also extend its reach in the dairy and aqua feed sectors in that country.
Meanwhile, July this year also saw InVivo Labs, the group’s analytical division, buy French molecular biology lab, AdGène.