Nutreco and Royal DSM stated there is a possible acquisition on the cards of French animal feed company Provimi. The firm has been put up for sale by private equity group Permira. Nutreco and DSM confirm that they have decided to jointly explore the possibility to acquire Provimi, should this opportunity arise.
Provimi is valued at €2 billion. There were two previous instances in which Nutreco considered the acquisition of Provimi. Previously US company Cargill and China’s New Hope Group also put in offers for Provimi.
The companies Nutreco and DSM said that a further statement will be made if and when appropriate.
According to Dutch daily Het Financieele Dagblad the companies would carve up Provimi if successful.
Analysts consider the highly fragmented animal feed industry ripe for consolidation. Approximately a third of the industry is in the hands of big international groups, while many family-owned companies are active in local markets.
Focus on fast growing countries
Nutreco stated this spring that it was ‘proactively pursuing significant positions in agri focus markets China, Brazil and Russia’, besides fish and shrimp feed markets in developing countries.
This week, Provimi reveiled a 28% jump to €139 million in takings from Latin America, boosted by a strong Brazilian performance, besides the takeover of Mexican pig and shrimp feed producer Nassa. For Nutreco, it is the third time a take-over is considered, after previous attempts in 2002 and 2007.
Nutreco is globally recognised in animal nutrition and fish feed. It is listed on the NYSE Euronext stock exchange in Amsterdam with annual revenues of €4.9 billion in 2010.