InVivo NSA buys Dutch organic fatty acids producer

French animal nutrition group, InVivo NSA, continues on the asset trail, yesterday reporting the acquisition of Netherlands based organic acids producer, Daavision.

The Dutch specialty additives manufacturer operates out of Lekstraat in Oss.

The company was originally set up to target the Eastern European market but a few years ago expanded into countries such as the Netherlands and France.  

“Daavision is in excellent financial health, the sale was a strategic decision from the owners in order to develop further the commercial reach of their products,” Pierre Joseph Paoli, executive director EMEA for InVivo NSA, told FeedNavigator.

He said the Dutch firm will be fully integrated into InVivo NSA’s existing additive division. “All staff will be retained,” added Paoli.

The Daavision portfolio, he continued, consists of a standard line but also tailor-made additives through blending of different types of acidifiers and plant extracts to address particular livestock challenges.

The company’s organic acid products focus mostly on pig and cattle production, said Paoli, adding that some products are also relevant for pet food and aquaculture.

Lauric acid innovation

Daavision’s strong innovation DNA appealed to InVivo NSA.

The Dutch company is said to be the first to succeed in producing a pure form of lauric acid, which remains stable as a powder for processing, even at lower temperatures. It said by adding 90% pure glycerol monolaurate (GML90) to this, a product is formed that is high in antibacterial properties and one that can be easily absorbed by the animal.

The acquisition will also strengthen the French group’s footprint in Russia, said Paoli. “One of the main distributors of Daavision is [based] in Russia - hence [through that network we will have] increased reach into that country.”

Growth ambitions

InVivo NSA, which has a turnover of $1.5bn, has long stated its ambition to be in the top five of specialty feed additive producers globally.

September 2014 saw it acquire Swiss flavoring palatants producer, Pancosma. That subsidiary subsequently purchased Btech in Brazil, in a deal signed off at the end of December last year.

Btech’s portfolio includes antioxidants, minerals, probiotics, flavors, organic acids, and betaine sources as well as products dedicated to ruminants.

Matthieu Leroydirector of projects, communication, and CEO advisor at InVivo NSA, told us previously the company is extremely positive about the revenue generation possibilities of specialty feed additives: “The sector is extremely appealing as it does not require as much capital input as other feed segments but generates a high return on investment. There is huge interest in acidifiers, in particular, as demand for alternatives to antibiotics increases.” 

InVivo NSA attracted €215m ($235.3m) from investors, led by private equity firm Eurazeo, back in March 2015.

It said then the funds generated demonstrated “investor confidence in InVivo NSA's sustainable growth strategy” with the capital set to help it accelerate its international development.