November 10, 2021
De Heus strengthens position in Vietnam by acquiring Masan's feed business
De Heus Vietnam announced the signing of a strategic agreement with Masan, pursuant to which De Heus will obtain control of 100% of the feed related business of MNS Feed.
MNS Feed's feed business covers 13 animal feed mills and one premix plant, with a total combined production capacity of nearly four million tonnes. Its assets will strengthen De Heus' position in Southeast Asia's largest animal feed market.
As part of the transaction, De Heus and Masan have also entered into multiple long-term strategic supply agreements for the former's supply of feed and pigs to Masan.
The transaction allows both companies to optimise and drive productivity of Vietnam's 3F (feed-farm-food) animal protein value chain by leveraging on each respective parties' strength and capabilities.
De Heus said it is strongly committed to support and contribute to the sustainable production of safe and healthy feed and food.
The acquisition of MNS Feed supports De Heus' focus and ambition to offer high-quality nutrition, genetics and farm management solutions to the Vietnamese market.
Additionally, De Heus and Masan MEATLife (MML) have agreed on numerous strategic supply agreements, including a multi-year pig supply contract, allowing De Heus to supply MML with a steady flow of high-quality pigs sourced from its feed customers, leveraging the strategic partnership De Heus has developed with Topigs Norsvin.
In line with the MoU, the cooperation further validates the parties' joint commitment to professionalise the farming sector and drives productivity in the entire animal protein value chain.
Gabor Fluit, chief executive officer of De Heus Asia, said: "We are very delighted with this milestone acquisition for De Heus. We warmly welcome the MNS Feed customers and employees to the De Heus family and are convinced that combining the highly respected MNS Feed business with the existing De Heus organisation will bring benefit to all.
"Both companies have a strong reputation in the market and take pride in delivering high-quality products to our customers and providing them with the best service available. We will continue to do so while taking the best from both worlds and therewith, creating an undisputed top level animal nutrition company which will be ready for a bright future in the growing Vietnamese feed market."
Johan van den Ban, general director of De Heus Vietnam and Cambodia, said: "Looking ahead, De Heus will continue to develop new value chain initiatives, focused on safeguarding product quality and improving the position of the livestock and aquaculture farmers and dealers.
"This transaction will accelerate the implementation of our commitment to bring the animal protein value chain in Vietnam to a higher level in terms of food safety, productivity, and sustainability. Together with the independent farmers, our feed distributors, employees and strategic partners, we are ready for further growth and success."
- De Heus