Cargill has acquired Diamond V, the US based manufacturer of fermented feed additive products for livestock, subject to regulatory approval. The transaction, for an undisclosed sum, is expected to complete in January 2018.
Iowa-based Diamond V was founded in 1943 and has remained in the same family ownership ever since. It specialises in feed additives designed to strengthen an animal’s immune system and promote a healthy digestive system to enhance food animal health and performance, while ensuring food safety.
Cargill says the move is a response to growing consumer preferences for “natural and wholesome food production”. As well as the livestock portfolio, it will gain the Diamond V human health business, Embria Health Sciences, and its branded yeast-based product EpiCor.
Together with the multinational’s recent minority investment in Delacon, the Austrian manufacturer of plant-based phytogenic feed additives, Cargill says the latest acquisition will give it a greater share of the $20 billion global animal feed additives market and the technical, regulatory and R&D capability to compete in 70 country markets around the world. The Diamond V brand will be Cargill’s platform for future investments in natural solutions for safer animal food production.
Diamond V’s headquarters will remain in Cedar Rapids, where the business has recently invested $30 million in upgrading its facilities ahead of its 75th anniversary next year. The company has offices in Europe
“Diamond V is a tremendous company with deep scientific expertise and a highly respected global brand,” notes Chuck Warta, president of Cargill’s premix and nutrition business. “Adding Diamond V’s leading talent and technology, as well as its applications for sustainable protein production, will enable us to deliver improved profitability and performance for our customers. Together, Cargill and Diamond V will accelerate the pace of innovation and drive strategic, long-term growth.”
Jeff Cannon, Diamond V president and chief executive adds: “Adding Cargill’s vast resources and global reach to Diamond V’s industry-leading practitioners, scientists, and technical experts, will allow the new organization to provide world-class, innovative technologies and solutions to the global animal health and nutrition industry. This acquisition is an investment in the well-being of animals – and ultimately, in people.”
“This acquisition strengthens Cargill’s and Diamond V’s shared vision to be a leader in creating new solutions for evolving consumer preferences for sustainable and wholesome food production,” states David MacLennan, Cargill’s chairman and chief executive officer. “Our combined businesses will accelerate growth, build industry-leading capabilities and natural solutions for animal health and food safety, and help fulfil Cargill’s purpose to nourish the world in a safe, responsible and sustainable way.”