Archer Daniels Midland Company (ADM) announced that it has agreed to terms granting exclusivity in discussions to purchase Neovia, a global provider of value-added animal nutrition solutions, including pet food ingredients and pet food. Neovia has 72 production facilities and a presence in 25 countries, headquartered in Saint-Nolff, Britanny, France, and owns several pet food manufacturing entities. The company ranked 23rd globally in the Top Pet Food Companies Database for 2017.
The 100 percent cash deal has an approximate enterprise value of EUR1.535 billion, subject to customary adjustments. Under French law, the signing of an acquisition agreement is contingent upon informing and consulting with relevant employee representative bodies. Subject to that process and regulatory approvals, the acquisition is expected to close by the fourth quarter.
“The acquisition of global leader Neovia would represent a transformative step for our Animal Nutrition business, and a major strategic investment in France,” said ADM Chairman and CEO Juan Luciano, in a press release.
“The acquisition of Neovia would be a major step as we continue to execute the value creation strategy we first outlined in 2014,” Luciano said. “Neovia is a major global provider of animal nutrition solutions, with significant operations in Western Europe, South and Central America, and Southeast Asia. Combining Neovia’s global presence and product and innovation expertise with our own growing animal nutrition footprint and capabilities would create one of the world’s leading animal nutrition providers, capable of offering complete solutions for customers around the globe—and would be the ideal platform for future growth.”
Founded in France in 1954, Neovia manufactures and sells a wide range of nutrition solutions for the feed industry, operating in business lines including premix and value-added services, pet care, additives and ingredients, aquaculture and complete feed. The company, which is currently majority owned by leading French agricultural cooperative group InVivo, has about 8,200 employees. It has innovation capabilities, with 11 R and D centers in six countries. It had global sales of EUR1.7bn in 2017, and, with very limited presence in the United States and more than 75 percent of its sales coming from outside Western Europe, the company’s footprint may complement ADM’s.
“This is an important addition, not only for our animal nutrition business, but for our entire integrated Nutrition platform,” said Vince Macciocchi, ADM’s senior vice president and president, nutrition, in a press release. “In recent years, health and wellness trends in human nutrition—such as clean-label, natural ingredients, and innovative solutions—are being echoed in animal nutrition. With Neovia, we will have global capabilities that span human and animal nutrition, expanding our reach and enhancing internal efficiencies. From colors and flavors to enzymes and bioactives, our new integrated nutrition platform will offer an unparalleled array of ingredients and solutions to meet customer needs.”
Over the last four years, ADM has undertaken the most extensive portfolio transformation in its 115-year history, moving closer to end customers by adding capabilities in specialty and value-added products and services. In its Animal Nutrition business, ADM has added premix and aquaculture capabilities in Asia; built new, modern facilities in North America; and moved into pet treats in 2017. Earlier this year, ADM combined its human and animal nutrition businesses into a single business unit that offers complete nutrition solutions.
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