October 16, 2018
De Heus enters Indonesian market through acquisition of Universal Agri Bisnisindo
The acquisition represents De Heus' entry in the Indonesian animal feed market and is in line with the company's strategy to further strengthen its position in the animal feed in Asia. It expects to close the acquisition during the fourth quarter of 2018.
With a population of 260 million people, Indonesia is the largest protein consumption market in Southeast Asia. Demand for animal proteins in Indonesia will continue to grow due to rising incomes, population growth and changes in dietary preferences. As a result, it is expected that the size of the animal feed market will further expand from 19 million tonnes to 22 million tonnes by 2022.
"With a total annual sales volume of 300,000 tonnes of poultry, fish and shrimp feed, Universal provides De Heus with an ideal platform to build and further expand our activities in Indonesia," said Koen De Heus, CEO of Royal De Heus.
De Heus further added: "De Heus is a family owned company with a long-term vision for the animal feed industry. Four generations of our family have shown their leadership, commitment and involvement with our clients and partners. I am sure that our knowledge, experience and international presence will help us to strengthen and grow Universal's feed activities in Indonesia by optimising the technical performances of its customers and the independent Indonesian farmers. We welcome the Universal employees to the De Heus family".
"..we would like to inform them that we are confident that De Heus will further strengthen and grow Universal," Octo Rachnalim, one of Universal's main shareholders, commented.
In 2009, De Heus has entered the Southeast Asian market through the acquisition of an animal feed company in Vietnam.
Nine years later, De Heus Vietnam has become a top three player, with eight factories strategically spread throughout the country.
"The success of De Heus in Vietnam - where since last year our regional Asian head office is located - has boosted our confidence to develop our activities in the region. Besides Vietnam, we are now successfully operating two feed mills in Myanmar, constructing a feed mill in Cambodia and through this acquisition, we can enter the promising Indonesian animal feed market," said Gabor Fluit, regional director of De Heus Asia.
De Heus will appoint Kay De Vreese - who has more than 15 years of experience in key management positions in the industry in both Europe and Asia - as president-director of Universal. He will be supported by Ton Hovers, an experienced professional in the Indonesian animal nutrition industry, who will become a member of Universal's board of directors and who will also focus on the further development and growth of the aqua business.
- De Heus