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News 623 views last update:May 24, 2007

Nutreco acquires Maple Leaf Animal Feed

Canada headquartered food processing company Maple Leaf Foods, has sold its animal nutrition business to Nutreco Holding NV for C$500 million (€3330m) plus normal closing adjustments. The transaction is expected to close in July 2007.

Maple Leaf Animal Nutrition through its well-known Shur-Gain brand in eastern Canada and Landmark brand in western Canada - is the leader in animal nutrition technology and offers a wide range of products such as complete feeds, premixes, feed speciality products, feed additives and pet food.

The business has strong, long-term customer relationships, an ambitious and experienced management team and a sound financial track record. The revenues are approximately C$650 million (€430m) and 2006 earnings before interest and taxes of about C$47 million (€31m).

Michael McCain, President and CEO of Maple Leaf Foods said the sale would permit the company to focus on its core value added bakery, meats and meals businesses; significantly de-leverage its balance sheet and provide the company flexibility to re-invest in value added businesses.
Increased presence in North America.

For Nutreco this major acquisition fits in its core business growth objectives. The animal nutrition business in North America is the largest in the world and it has been a long standing ambition of Nutreco to increase its presence in this important area.

The business is Canada's leading animal nutrition supplier with an overall share of above 20%. Total production in 2006 was 1.7 million tonnes of feed (5.9 million tonnes on a compound feed equivalent basis).

It owns and operates 18 dedicated feed manufacturing facilities. The company has approximately 1,200 employees in eight Canadian provinces and New York State.
 
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