February 3, 2021

ForFarmers closes acquisition of De Hoop Mengvoeders

ForFarmers has closed the acquisition of De Hoop Mengvoeders, which was announced last October.

The company has acquired shares in De Hoop's compound feed business and its related transport activities as well as a mill with an adjacent real estate. The acquisition price comprises a fixed amount of €23 million (US$27.7 million) and a conditional payment of at maximum €17 million (US$20.5 million), subject to the realisation of agreed targets for the merged, new organisation of ForFarmers and De Hoop. The fixed amount is currently being paid in cash at closing, while the conditional payment will potentially take place in 2023.

The maximum takeover price takes into account the existing market circumstances and is based on a multiple (on EBITDA) that matches the historical range that ForFarmers has paid for acquisitions.

Required permits have been granted by Dutch and German competition authorities while other conditions precedent have been met. The merger of ForFarmers and De Hoop will create a poultry feed organisation that will have a leading position in the broiler markets of the Netherlands, Belgium and Germany, according to ForFarmers.

The new organisation will be managed by Michiel Schreurs, director of poultry of ForFarmers Netherlands, and the previous owner of De Hoop Mengvoeders, Gert-Jan Buunk, who will be responsible for the broiler sector.

- ForFarmers