ForFarmers is taking over UK-based food group BOCM Pauls for €85 million and becomes the largest feed producer in Europe. Yesterday, Wednesday, March 28, 2012, the contract between the two parties was signed.
The purchase price is based on an enterprise value of €85 million after deducting a provision for deficits of the pension fund and a deferred payment of the net proceeds of property for development.
The transaction must be approved by the general meeting of shareholders of ForFarmers Group. In addition, an European competition procedure has to be followed and the workers council needs to be consulted for advice.
BOCM Pauls is a 20% market share leader in the production and sale of compound feed in the UK. It operates 11 compound feed mills and at seven locations special blends are manufactured.
Annually BOCM Pauls produces over 1.9 million tonnes of feed (including blends). Turnover of the company is €600 million.
Total feed business
BOCM Pauls launched a ‘Total Feed Business’ concept which has lead to a surge in sales. This concept provides every possible (nutritional) feed solution that a farmer needs with maximum efficiency.
By purchasing the activities of BOCM Pauls ForFarmers becomes the largest feed company in Europe with:
• 8.8 million tonnes of feed, of which 6.5 m tonnes compound feed and 2.3 m tonnes of single products and co-products.
• 2,500 employees
• Turnover of €6.6 billion
The acquisition of BOCM Pauls fits into the strategy: improve by growth. ForFarmers expects synergies to be gained by increased purchasing power and availability of knowledge, particularly in automation.
The current management of BOCM Pauls will continue leading the company.
The new organization of the ForFarmers Group will consist of the following people:
• Bert Jan Ruumpol (CEO, chief executive officer);
• Arnout Traas (CFO, Chief Financial Officer);
• Jan Potijk (COO, chief operating officer);
• Ronald van de Ven (COO, chief operating officer), and
• Nico de Vos (CNO, chief nutritional officer).
After approval of the acquisition the responsible director of BOCM Pauls will be added as COO to the management of the ForFarmers Group.
“For our Dutch, German and Belgian customers this acquisition will change little. Our ambition remains to deliver an optimum contribution to the yield on farms,” said Bert Jan Ruumpol.
“ForFarmers remains a no-nonsense organisation, close to its farmers knowing what’s happening in the marketplace.”