May 22, 2007 

 

Nutreco agrees to acquire Canada's leading animal nutrition business
 

Press release
 

 

Nutreco Holding N.V. announced that it has signed an agreement to acquire Canada's leading animal nutrition business from Maple Leaf Foods Inc. at a cost of C$500 million (EUR330 million or US$461.557 million). The transaction is expected to close in the third quarter of 2007.

 

The acquired business - 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.

 

Having established strong, long-term customer relationships, and boasting an ambitious and experienced management team as well as a sound financial track record, the business has posted revenues totalling C$650 million (EUR430 million or US$599.873 million) with a strong earnings margin.

 

As Canada's leading animal nutrition supplier, the business holds a share of more than 20 percent of the domestic market, with total production in 2006 registering 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, and employs some 1,200 staff in eight Canadian provinces and New York State.

 

In its May 22 press release on the purchase, Nutreco said this major acquisition was in line with its core business growth objectives. As the animal nutrition business in North America is the largest in the world, the company expressed its long-standing ambition to increase its presence in this important region.

 

In particular, Nutreco's growth strategy in animal nutrition focuses on capturing strong positions in nine countries where the company is already active: Brazil, Canada, China, Germany, India, Poland, Mexico, Russia and the United States.

 

Juergen Steinemann, Nutreco's Chief Operating Officer, stated, "I am very pleased with this transaction as it allows us to establish a leading position in North America with good growth potential. This acquisition also provides a solid platform for further steps in this region. We welcome the people of Maple Leaf's animal nutrition business who will team with Nutreco to strengthen our global activities." 

 

The closing of the transaction will be subject to customary regulatory approvals.

 

Rabo Securities and its affiliate, Rabobank International, acted as an exclusive financial advisor to Nutreco.  

 

Since the announcement of its 'Rebalancing for Growth' strategy, Nutreco has acquired animal nutrition and fish feed businesses in Japan, Mexico, Russia, China, India, Poland, UK, Indonesia, Guatemala, Italy and the US. Nutreco has also established a new feed specialities production facility in Brazil.