January 23, 2008

Nutreco ready to expand in Spain
 

After recent takeovers in the US and Japan in the aquafeed sector, Nutreco has signed a letter of intent to acquire the feed and meat assets of Copaga in Catalonia, Spain.

The assets will comprise of a feed factory, a poultry processing facility and a pig integration business.

The feed factory has a capacity of about 300,000 tonnes and will help to strengthen Nutreco's market position in the region. The poultry processing facility has an annual total production of about 25 million chickens. This facility has been operated by Nutreco since July 2000 under a lease contract.

The acquisition of these assets will enable Nutreco optimize feed and meat capacity and reduce production costs. It will also increase about EUR 50 million (US$73.1 million) in revenues and will enhance EPS (Earnings Per Share).

The transaction is expected to close in the first quarter of 2008.

Nutreco Holding N.V. is an international animal nutrition and fish feed company located in Netherlands while Nelson and Sons Inc is a US commercial fish feed manufacturer which was founded more than six decades ago as a wholesales produce company.

It has recently acquired Japanese fish feed production facilities Marine Net Co. Ltd and US fish feed manufacturer Nelson and Sons Inc.