US multinational crop trading and processing company Archer Daniels Midland (ADM) has completed its €1.54 billion purchase of the Neovia feed manufacturing operation from the French co-operative InVivo. The integrated business will be one of the world’s largest livestock and pet animal nutrition enterprises, with proforma annual revenues of $3.5 billion.
ADM first made its offer for Neovia in July last year. InVivo held 67.5% of the equity, with minority shareholdings owned by Eurazeo, Unigrains, Future French Champions and IDIA Capital Investissement. Although based in France, 80% of Neovia’s revenues were from international sales.
The US company says the deal, its largest for five years, is the latest in the planned expansion of its animal nutrition operations. This programme has seen the building and renovation of three animal feed plants in China and four in the US; a partnership with China’s Qingdao Vland Biotech Group with a new research facility in California to develop and commercialise feed enzymes; and the acquisition of the UK’s probiotic specialist Protexin.
With the integration of Neovia, ADM Animal Nutrition will be able to offer premixes, complete feeds including aquaculture diets, ingredients, additives and amino acids to its customers around the world.
“The addition of Neovia represents a major milestone in the execution of our strategic plan to become a global leader in nutrition,” says ADM chairman and chief executive Juan Luciano. “This acquisition instantly creates a premier global leader in animal nutrition, while simultaneously providing a strong platform for future growth. It meets our returns objectives, expands our geographic reach, and helps us continue to expand our portfolio and better serve our customers.”
President of ADM Animal Nutrition Pierre Duprat adds: “Combining our resources, expertise, innovation and research-driven technologies creates something very special: the premier global provider of animal nutrition ingredients and solutions, best-in-class customer service and leading R&D capabilities for our animal nutrition customers across the globe and creating value for our shareholders.”
InVivo chief executive Thierry Blandinières says the divestment is part of the co-operative group’s strategy to focus its resources on three core activities by 2015 – agriculture, wine and retail.
“This operation will allow us to pivot towards our core businesses and accelerate our digital transformation, particularly in our international trading activity and our role as an agricultural supplies purchasing centre, to benefit our member co-operatives,” he states. “At the same time, we will increase investment in our subsidiaries, Bioline by InVivo, InVivo Retail, InVivo Wine and InVivo Food&Tech, making it possible for new French champions to emerge, both at national and international level.”
●Last month, InVivo sold its 50% share in Gleadell Agriculture to ADM for an undisclosed sum.