October 6, 2010
Provimi acquires leading Mexican animal nutrition group
Press Release
The Provimi Group, one of the global leaders in animal nutrition, has reached an agreement to acquire NASSA, a leading swine and shrimp feed producer in Mexico.
NASSA is a highly successful, well established animal nutrition business with potential for further growth. This acquisition is in line with Provimi''s strategy of increasing its footprint in Latin America and provides Provimi with a key entry position in this important nutritional market.
NASSA mainly produces premix, pre-starters, concentrates and complete feed for swine and shrimp. The company also has some smaller product offerings for poultry, ruminants and other species and offers high quality technical consulting services. NASSA is located in Ciudad Obreg？3n, in the State of Sonora and has three production plants and five warehouses providing nationwide coverage for premixes and concentrates. The company has 265 employees.
The acquisition of NASSA will enable Provimi to enhance its already strong position in Latin America by the addition of a successful business in Mexico, the fourth largest feed market in the world after the US, China and Brazil. Mexico has a large, growing population, estimated at 110 million and has grown GDP by an average of 4% over the last 20 years, with further growth to come.
Provimi intends to invest in NASSA and to develop its business in new areas such as poultry and ruminants, using Provimi''s expertise. Becoming part of the Provimi group will also allow NASSA to strengthen its position in the market using Provimi''s proven technological and business skills.
Ton van der Laan, chief executive of Provimi said, "This is an important acquisition for Provimi and a great addition to our already strong business in Latin America. Mexico is an exciting market and we believe NASSA has potential for growth both in its existing businesses and by expansion into new areas of animal nutrition using Provimi''s knowledge and expertise."
Provimi already has a strong presence in Latin America with three other companies: Nutron in Brazil, Alimental in Argentina, Provimi SA in Colombia. These companies produce animal nutrition products for poultry, swine and ruminants, specialties and pet food. Provimi''s total revenues in Latin America amounted to EUR180 million (US$248 million) in 2009.
The Share Purchase Agreement has been signed and the deal is expected to close by the end of this month. The completion of the deal is pending approval of the Mexican anti-trust authorities, the Comisi？3n Federal de Competencia, and other customary conditions to completion.