“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 Cargill’s animal nutrition growth strategy and underlines our commitment to continued long-term investment to meet the needs of our customers around the world.”
Provimi, which has operations in 26 countries, produces premixes, additives and complete feeds. It recently sold its pet food business to Advent International for about $270 million.
Cargill offers branded animal food for livestock producers and pet owners. It also provides feed ingredients to feed manufacturers.
Company officials said the two businesses will complement each other well.
“Bringing together the talents and expertise of both companies is expected to open up new innovation and market development opportunities,” said Todd Hall, Cargill’s corporate vice president. “Provimi’s excellence in cutting edge technology and applications, alongside Cargill’s global supply chain and market insights should enable us to develop and deliver a range of innovative, high quality products and services to customers.”
Cargill is buying Provimi from private equity firm Permira, which acquired the company in 2007. Provimi chairman and group chief executive officer Tom van der Laan said Cargill provided a clear and compelling case to become Provimi’s new owners.
“We believe that combination of its animal nutrition business with Provimi will create a stronger business, improving the delivery of innovative nutritional solutions to our customers,” van der Laan said. “With Cargill’s global presence and committed focus on animal nutrition, we can take Provimi to the next stage of its development.”