The company would not disclose the financial details of the deal but Matthieu Leroy, director of projects, communication, and CEO advisor at InVivo NSA, told us it was a “very significant acquisition in terms of industrial assets.”
InVivo NSA, he said, has had a presence in the Philippines since 2014 in the form of a "commercial subsidiary".
The purchase of PFC allows the French player to strengthen its standing in that fast growing market, it gains feed manufacturing facilities in Cebu and Bulacan near Manila, said Leroy.
“PFC is very well known in the Philippines and ranks among the top 15 feed producers there in the key [livestock] segments,” he said.
The Filipino company produces around 150,000 tons of pig, poultry, aquaculture, and pet feed annually.
South East Asian strategy
In terms of whether the acquisition would result in PFC expanding into other countries, Leroy said: “It has a limited level of export sales. At the present time, the deal is mainly aimed at reinforcing and accelerating our presence in the Philippines. The objective of InVivo NSA is to grow its presence in the South East Asian countries where it already operates in.”
The French group has feed activities in Vietnam, Indonesia, India, China, Cambodia, Myanmar, and Thailand.
The Philippines has a population of over 100 million people, which is expected to grow by 57% by 2050, making it then the 10th most populated country in the world, noted InVivo NSA.
The biggest user of feed, in terms of livestock segments in that Asian country, are broilers, followed by layers and then swine, said Leroy.
Quick-win synergies
InVivo NSA said it wants to explore the evident pet food market tie-ups in its businesses in Mexico, Brazil and the Philippines. “We have identified ‘quick win’ synergies in that market segment,” said Leroy.
The French group will also look to exploit any other complementary aspects of its wider feed operations in those three markets at a later stage, he added.
InVivo NSA has already been active in terms of building assets this year. February saw it acquire Netherlands based organic acids producer, Daavision.