November 14, 2019
Nutreco signs deal to acquire Cargill's compound feed business in Portugal
Nutreco announced in late October that it has signed an agreement to acquire Cargill's compound feed business in Portugal for an undisclosed price.
Once the deal is completed, the business will become part of Nanta, Nutreco's Iberian animal feed business within its animal nutrition division, Trouw Nutrition. The deal will strengthen Nanta's position in Portugal.
"We are delighted to announce that Nutreco, has signed a deal to acquire such a reputable business," said Nutreco COO and Trouw Nutrition CEO Harm de Wildt.
"Closing this transaction is part of our strategy to strengthen and grow our base in the Iberian Peninsula."
The deal covers Cargill's production of compound feed for the Portuguese market, mainly ruminant feed and lifestyle feed, which is sold both directly to professional farmers and through a network of dealers and retail stores. Its two plants in Portugal - one in the North in Ovar and one in the centre-south in Alverca - will transfer to Nutreco as part of the deal, increasing Nanta's footprint in Portugal from its current one plant in Marco de Canaveses to three, allowing for production optimisation.
Cargill's premix and nutrition business in Portugal is not included in the transaction.
"The sale of our compound feed business in Portugal reflects our efforts to geographically align assets in our portfolio with our strategy to focus on core nutritional excellence. It also creates further growth opportunities for our business and our people with an organisation that has a strong appetite for investment and will continue delivering in the best long-term interests of both our customers and employees," said Jolanda van Haarlem, regional managing director for Cargill's animal nutrition business in EMEA.
Nanta already has a fully-fledged organisation in Portugal, which will take over management of Cargill's compound feed operations in the country.
Nutreco's managing director Iberia Gerd Botter explained: "We will be working closely together with Cargill's compound feed business in Portugal to ensure a proper integration of the business as soon as possible after all necessary authorisations have been given. Doing so will ensure that customers continue to get the products they need as they need them and at a quality level they're used to. Expanding our base in this way will improve our services to our existing customer base in Portugal while providing Nutreco a great platform for growth."
Subject to approval from the Portuguese authorities, the transaction is expected to be completed in three to five months.