Responding to growing consumer preferences for natural and wholesome food production, Cargill has announced on October 24 that it has signed a binding agreement to acquire Diamond V.
This acquisition, which follows Cargill's recent investment in Delacon, a global leader in natural, plant-based phytogenic additives, will give Cargill market-leading participation in the US$20 billion global animal feed additives market, as well as world-class technical, regulatory and R&D capabilities and go-to-market strength in approximately 70 countries worldwide.
"This acquisition strengthens Cargill's and Diamond V's shared vision to be a leader in creating new solutions for evolving consumer preferences for sustainable and wholesome food production," said David MacLennan, Cargill's chairman and chief executive officer. "Our combined businesses will accelerate growth, build industry-leading capabilities and natural solutions for animal health and food safety, and help fulfill Cargill's purpose to nourish the world in a safe, responsible and sustainable way."
The purchase will encompass all of Diamond V's business, including the human health business. Diamond V's headquarters will remain in Cedar Rapids and the Diamond V brand will be the platform for future investments in natural solutions for safer animal food production.
"I am excited about what Diamond V and Cargill can accomplish together," said Jeff Cannon, Diamond V president and CEO. "This acquisition is an investment in the well-being of animals - and ultimately, in people."
"Diamond V is a tremendous company with deep scientific expertise and a highly respected global brand," said Chuck Warta, president of Cargill's premix and nutrition business. "Adding Diamond V's leading talent and technology as well as its applications for sustainable protein production, will enable us to deliver improved profitability and performance for our customers. Together, Cargill and Diamond V will accelerate the pace of innovation and drive strategic, long-term growth."
Cargill has deep nutritional expertise built over decades and delivered through its animal nutrition business. Diamond V will enhance these capabilities through its innovative focus on immune function and digestive health, critical components that will help customers improve the well-being of their animals and the safety of the food supply. Diamond V has earned a global reputation of trust and reliability in the animal nutrition industry and is recognised as a leader in food safety.
Terms of the deal were not disclosed. The transaction is expected to close in January 2018, subject to regulatory approval and customary closing conditions.
Cargill Official Website: www.cargill.com
Diamond V Official Website: www.novusint.com