June 13, 2018
ForFarmers strengthens position in Belgium by acquiring Voeders Algoet
ForFarmers is acquiring Voeders Algoet, a feed company established in Zulte, close to ForFarmers' Belgian sites.
As a result, ForFarmers strengthens its position ain Belgium with an offer of its Total Feed solutions.
Voeders Algoet sells around 150,000 tonnes of compound feed to swine and ruminant farmers. In the split financial year (July 1-June 30) 2016/2017, the company generated sales of approximately EUR40 million (US$47 million) with an operating result before amortisation and depreciation (EBITDA) of approximately EUR2 million (US$2.35 million).
ForFarmers is paying around seven times Voeders Algoet's EBITDA. Closing of the transaction is expected to take place in the second half year of 2018, pending, amongst others, approval from the Belgian competition authorities.
Voeders Algoet's results will be consolidated in the results of ForFarmers as of closing date.
Voeders Algoet's current management and 22 staff form part of the transaction.
In addition, 12 bulk trailers are included in the acquisition. As a result, ForFarmers is starting its own transport activities in Belgium.
Voeders Algoet will be integrated into ForFarmers Belgium. Voeders Algoet's contract farming activities is not taken over by ForFarmers.
Over time, Voeders Algoet's feed production will probably be transferred to the current ForFarmers factories in Izegem and Ingelmunster
Added value for customers
Said Adrie van der Ven, ForFarmers' COO who is responsible for its Belgium/Germany cluster and new regions: "This acquisition fits into the consolidation that is needed for a healthy agricultural sector in Belgium in the long-term. Combining the knowledge of both companies to optimally support customers with their business targets is the main priority. Voeders Algoet's experience and market position contribute to a further reinforcement of our Total Feed approach in Belgium. The new combination will also be the second largest feed company in Belgium."
Steven and Olivier Algoet, the current owners of Voeders Algoet, see an opportunity to expand their offerings to customers further with this transaction.
"ForFarmers and Voeders Algoet are ambitious and focused on offering quality feed, with the accompanying professional advice. The focus is on increasing yields in the agricultural business. This step gives our customers and staff the opportunity to grow with the company towards ForFarmers' ambitions," they said.