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August 17, 2011
MINNEAPOLISCargill announced it will purchase Netherlands-based animal feed company Provimi for 1.5 billion (approximately $2.15 billion) from the private equity firm Permira. The deal, which is subject to appropriate regulatory approvals, will strengthen and expand Cargills existing operations and create a global leader in animal nutrition.
Provimi has operations in 26 countries and employs more than 7,000 people across Asia, Europe, Africa and Latin America. Cargill currently has animal feed operations in 26 countries worldwide offering branded and customized feed products and services, as well as ingredients for feed manufacturers and retailers.
The combination of Cargill and Provimi would create a new, world-class animal nutrition offering with the expertise to offer customers a full range of enhanced products and services," said Cargill Vice Chairman Paul Conway. This acquisition would mark a significant step in Cargills animal nutrition growth strategy and underlines our commitment to continued long-term investment to meet the needs of our customers around the world. We look forward to working with Provimi."
Cargill and Provimi have complementary market positions and strengths. Provimi has broad nutritional expertise, and a wide portfolio of premix, additives and ingredients; Cargills animal nutrition business brings expertise in compound feed, supply chain and risk management as well as access to global trends, knowledge and information from across the agricultural supply chain. The combination of the businesses would provide an increased range of capabilities and a global network to service customers.
Bringing together the talents and expertise of both companies is expected to open up new innovation and market development opportunities," said Todd Hall, Cargill corporate vice president. Provimis excellence in cutting-edge technology and application, alongside Cargills global supply chain and market insights should enable us together to develop and deliver a range of innovative, high-quality products and services to customers."
Commenting on the deal, Ton van der Laan, chairman and group chief executive officer of Provimi, said: Cargill provided a clear and compelling case to become our new owner and we believe that a combination of its animal nutrition business with Provimi will create a stronger business, improving the delivery of innovative nutritional solutions to our customers. With Cargills global presence and committed focus on animal nutrition, we can take Provimi to the next stage of its development."
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