US crop giant Cargill to pay $2.17 billion for Netherlands' Provimi
16 Aug 2011
Cargill Inc, the US-based crops giant today said that it will pay €1.5 billion ($2.17 billion) for Netherlands-based animal feeds producer Provimi, to cement its dominant position in the animal nutrition business.
The proposed acquisition by one of the world's largest privately owned corporations comes two months after it agreed to buy Raggio di Sole, an Italian animal feed company, for an undisclosed sum. (See: Cargill to acquire Italian animal feed company Raggio di Sole)
Under the deal, Minneapolis-based Cargill, which is controlled by the Cargill and MacMillan families, will get Provimi's worldwide animal nutrition business, which has operations in 26 countries and employs more than 7,000 people across Asia, Europe, Africa and Latin America.
Provimi, which is owned by private equity firm Permira Advisers, is active worldwide in several types of animal nutrition and is a leader in all markets where it is present. It has 67 production centres in 26 countries and exports to over 100 nations.
Provimi manufactures products and supplies technical support for various species, predominantly ruminants, poultry and swine and the Rotterdam-based company had annual sales of €1.6 billion in 2010.
Cargill and Provimi have complementary market positions and strengths with Provimi having broad nutritional expertise, and a wide portfolio of premix, additives and ingredients, while Cargill's animal nutrition business has expertise in compound feed, supply chain and risk management as well as access to global trends, knowledge and information from across the agricultural supply chain.
