US Cargill wins bid for Dutch animal feed Provimi
US food giant Cargill has made a bid to take over Dutch animal-nutrition concern Provimi. It was revealed on Monday that the two companies conducted exclusive talks on the 1.5-billion-euro deal.
Netherlands-based, branch competitor Nutreco and Dutch chemical giant DSM were investigating the option of making a joint bid for Provimi. In late July, the two companies issued a statement that “they have decided to jointly explore the possibility to acquire Provimi, should this opportunity arise”.
Operations in 26 countries Rotterdam-base Provimi makes ingredients and additives that are used in animal feeds for livestock, chickens and pigs. Globally, Provimi has operations in 26 countries and employs more than 7,000 people across Asia, Europe, Africa and Latin America.
Cargill - an international producer of food as well as agricultural, financial and industrial products and services - has a growing animal-nutrition business unit.
Strategic match The two companies spoke of a strategically-strong match, “both geographically and culturally”. Provimi’s market position in Latin America, Russia and Asia is in line with Cargill’s growth plans to be global leader in animal nutrition.
Provimi CEO Ton van der Laan said Cargill made a “transparent and convincing presentation to become our new owner and we believe our combined forces will produce a strong company.”
Provimi owner makes huge profit Provimi is being sold by its private-equity owner Permira, which acquired the company in 2007 for around 580 million euros. Provimi posted profits before tax of 154.2 million euros, with a turnover of 1.6 billion, in 2010. Profits for the first half of 2011 are up 20.3% from the same period last year.
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