February 21, 2007

Nutreco acquires BASF's animal nutrition business

Nutreco Holding N V announced the takeover of the animal feed blends, premix and base mix business of BASF in Poland, Italy, USA, UK, Mexico, Guatemala, China and Indonesia at an undisclosed price.

BASF expects the transaction, which is subject to the approval of concerned authorities, to close in the Q2 of 2007.

The world market for animal nutrition grows by 2-3 percent annually; although in China, Mexico, US, Poland and Indonesia this percentage is higher, said Nutreco's chief operating officer Juergen Steinemann.

Reinforcing the company's strongholds in these growth markets with BASF's operations would help them to gain momentum for further expansion in the US and Asia, he added.

He also pointed out that their leading position in Europe in premix and feed specialities with

Trouw Nutrition International has been strengthened with the contribution of the mixing business of BASF in important animal feed markets.

Vitamin blends and premixes are used in compound feed for poultry, cattle, pigs and for pets. Key customers are feed mills, integrators and farms.

Premixes and vitamin blends are more concentrated mixes. With this new step, Nutreco's premix and feed specialities business, Trouw Nutrition International, with total annual sales in 2006 of EUR 550 million (US$722 million), will almost double its sales in premixes to EUR 400 million (US$525 million), becoming the no. 2 player in the global premix industry.