March 26, 2008

France's Evialis to buy Mexican feed company

Feed maker Evialis has announced the completion of an agreement which would enable it to purchase 70 percent of the shares of Malta Cleyton, a leading animal and pet food maker in Mexico.

Evialis said the agreement, which still requires regulatory approval, meets the long-term goals of both organizations in that Malta Cleyton finds a new strategic shareholder that will bring all of its scientific, technical and commercial know-how to back its fast growing expansion. Evialis in turn would fulfil its strategy of internationalisation by gaining access to the fourth largest feed market in the world.

Malta Cleyton's product range is said to be very similar to Evialis.

Evialis would acquire 50 percent of the shares and 20 percent more within a year. The 30 percent remaining will stay with the present shareholders: US cooperative Growmark with 10 percent, and the management team, with 20 percent.

Malta Cleyton has a turnover of EUR 130 million yearly and owns 10 feed facilities in Mexico. The addition will allow Evialis to almost double its international sales, bringing the segment to about 33 percent of its pro-forma sales for 2008.