Kiotech has asked its shareholders to approve a merger with Optivite, with the outlook that the new enlarged company will improve customer choice; enhance market presence and boost ability to compete with the larger feed additive companies.

The shareholder meeting will take place on September 30, 2009, after which and subject to approval, the merger will be completed.

Optivite Group is one of the UK's largest independent animal nutrition and feed additive businesses with a turnover approaching GBP18 million. It specialises in the design, development and manufacture of non-hazardous, drug-free animal products for the maintenance and enhancement of feed quality, giving better health and yield performance. Specifically its products include organic feeds, premixes, fatty acids, concentrates and enzymes. The range also includes an omega-3 fatty acid supplement for the pig, poultry and ruminant markets.  

''Combining Kiotech and Optivite will create a stronger company and allow us to pool resources offering our customers access to a broader range of products and technical support,'' said Kiotech chief executive Richard Edwards.

''It will also allow us to drive further growth and market share by enabling faster access to new products and new markets. Both the Optivite and the Kiotechagil will be retained in the market place, supported by their respective teams,'' said Edwards.

Optivite chairman Richard Scragg will join the Board at completion of the deal.

The enlarged company has ambitions to retain and grow international market share. Kiotech currently supplies to more than 50 countries worldwide and Optivite to more than 30 and it is estimated that around one third of the enlarged group's sales will be overseas.

Kiotech is an international supplier of natural high performance feed additives to enhance growth, health and sustainability in agriculture and aquaculture.