December 26, 2007

Zagro acquires BASF's premix business in Taiwan

Singapore-based Zagro Group has acquired the animal nutrition premix business from BASF Taiwan's Animal Nutrition unit under its Fine Chemicals operating division in a NT114.14 million (US$ 3.5 million) deal. 

As part of the acquisition, Zagro will take over the entire running of BASF Taiwan's animal nutrition premix business, including ownership of its manufacturing facility in Nankang Industrial Zone, Nan-Tou City, Taiwan, spanning an area of 4920 square meters.

This acquisition is expected to lift Zagro's top and bottom lines by double digits and present the company an opportunity to cross-sell products from its other businesses such as those in crop care, animal health and aquaculture,the company said.

The acquired business is a strategic fit to Zagro as it complements the company's existing business units and immediately affords Zagro a valuable springboard into another Asian market, according to chairman and chief executive Poh Beng Swee.

The deal includes a multi-year supply contract from BASF to supply raw materials for the premix business and the agency and distribution rights for BASF animal nutrition products in Taiwan.

Zagro acquired animal health brands Neocidol and Steladone from Novartis in 2005. Acqusitions have helped Zagro expand from a regional player to a global one, with 600 product registrations in more than 70 countries. Pah added that the company is on the lookout for more acquisitions in the next two years.