The Dutch animal and aquafeed company announced Wednesday [Oct. 30] that it had reached an agreement with Cargill to acquire the company’s compound feed business for an undisclosed amount.
The business is set to become part of Nanta – Nutreco’s Iberian feed business within the company’s animal nutrition division, Trouw Nutrition.
The deal is expected to improve Nutreco’s position in Iberia, a company spokesperson told us.
“With a strong premix business in Iberia, the acquisition of a compound feed business will improve our service offerings to our customer base,” the spokesperson said. “The deal also optimizes Nanta’s production capacity in Portugal.”
The acquired business is a “natural fit” for Nutreco’s Iberian business, she said. It is expected that the additional facilities and production will allow the company to respond more quickly to customer needs.
The sale of the compound feed business located in Portugal reflects Cargill’s efforts to geographically streamline assets in its portfolio, said Jolanda van Haarlem, regional managing director for Cargill’s animal nutrition business, EMEA.
Acquisition details
The acquisition includes two compound feed production facilities. One of the acquired plants is in the north of the country, in Ovar, and the other is in the center-south of the country, in Alvera, and both are intended to complement the production at Nutreco’s current facility in Marco de Canaveses, the Nutreco spokesperson said.
However, Cargill’s premix and nutrition business located in Portugal is not part of the acquisition.
Following the completion of all necessary authorizations, Nutreco and Cargill will work together on integration to support the customer base, added Gerd Botter, managing director Iberia with Nutreco.
Subject to approval from the Portuguese authorities, the transaction is expected to be completed in three to five months. “Once the transaction has been completed, we aim to fully integrate the business into Nanta Portugal.”
In addition to expanding facilities and market footprint in Portugal, Nutreco announced the acquisition of the premix company Animal Nutrition and Health (ANH) in South Africa earlier this month.
The deal was initially signed in July, and the company received final regulatory approvals at the start of October.
