January 25, 2007

Nutreco sells animal breeding business to Hendrix Genetics

Netherlands-based animal nutrition and fish feed company Nutreco Holding N V signed an MoU over the sale of the animal breeding activities Euribrid to Hendrix Genetics.

The expected deal worth around EUR50 million (US$64.8 million) includes its related animal breeding research centre. The deal would be complete in the first half of this year.

Euribrid is the animal breeding activity of Nutreco consists of three dedicated breeding companies, each focusing on its own species-Hybro (broilers) Hybrid (turkeys) and Hypor (pigs). It also includes a trading company (day-old chickens and hatching eggs from layers and broilers) called Plumex.

The net proceeds after deduction of costs and other charges connected with the transaction are in excess of book value, according to Nutreco.

Nutreco's chief operating officer Juergen Steinemann considers the sale as the best guarantee of future opportunities for Nutreco's breeding business and the people who work in it. He said the move was in line with Nutreco's "Rebalancing for Growth" strategy.

In the past 20 months the Dutch agribusiness Nutreco has acquired a fish feed business in Japan and animal feed businesses have been acquired in Mexico, Russia, China, India and the Netherlands. In Brazil, a new production facility has been brought on stream.