ForFarmers completes acquisition of Vleuten-Steijn
ForFarmers has announced the completion of the acquisition of VleutenSteijnVoeders B.V. by ForFarmers Nederland B.V. as all conditions precedent have been met.
ForFarmers is acquiring all of Vleuten-Steijn's shares. As agreed in the purchase agreement, 70% of the transaction's consideration of approximately EUR30 million (US$33.6 million) will be paid immediately. The remainder will be paid after three years, dependent on the achievement of targets which have been specified in advance.
Vleuten-Steijn will be consolidated in the results of ForFarmers as of October 1.
Vleuten-Steijn is a feed company focused on the swine sector, predominantly in the southeast of the Netherlands. The company generated a turnover of some EUR91 million (US$102 million) in 2015 from the sale of approximately 295,000 tonnes of feed to mostly larger companies in particularly the sow and piglet segment. The feed production of the company has been outsourced to third parties.
ForFarmers strengthens its position in the Dutch swine sector with this acquisition, particularly as a result of the knowledge of the large and specialised companies where Vleuten-Steijn has built up a strong reputation. ForFarmers believes in a swine sector which will be profitable in the long term. This acquisition fits in perfectly with the accordingly necessary consolidation. Vleuten-Steijn's employees' specific knowledge and experience will contribute to the further strengthening of the Total Feed approach, which ForFarmers already offers to pig farmers.