April 5, 2023

 

ForFarmers to sell Belgian compound feed activities to Arvesta

 

 

ForFarmers will sell ForFarmers Belgium to leading agricultural and horticultural expert Arvesta, the feed organisation announced on April 4.

 

The current context, in which the agricultural sector is being put under pressure to produce even more sustainably, is leading to more consolidation and cooperation in the chain, ForFarmers added. Hence, ForFarmers and Arvesta entered into discussions focused on ForFarmers Belgium and closer cooperation in the chain.

 

With the acquisition of ForFarmers Belgium, Arvesta will take over a manpower of approximately 80 employees who produce and sell an estimated 420,000 tonnes of feed and a production site in Izegem in West Flanders, Belgium.

 

Additionally, the mill and site in Ingelmunster are also included in the transaction. Arvesta already has production sites for feed production in Aalter, Merksem, Kortrijk, Andenne and Hombourg. Due to increased production coverage, customers can be better supplied.

 

Both companies will also work more closely, especially in the broiler sector in Belgium; ForFarmers will continue to produce feed in the Netherlands, so as to maintain smooth deliveries to broiler farmers.

 

Arvesta will transfer its feed activities in the Dutch broiler sector to ForFarmers. Both parties will focus on improving chain concepts in this collaboration.

 

The latest transaction is in line with ForFarmers' strategic focus, with an emphasis on ecological ánd economic returns.

 

The acquisition also aligns with Arvesta's continued strategy and strengthens its position in the Belgian market.

 

ForFarmers will receive a net amount of €25 million (US$27.4 million) from Arvesta for the transaction, to be paid in cash at closing of the transaction. This is expected to take place in the second half of 2023.

 

The transaction is subject to approval of the Belgian competition authority.

 

- ForFarmers