The Provimi Group, an animal nutrition company based in Rotterdam, Netherlands, reported today that it has agreed to sell its pet food division to private equity firm Advent International for about $266 million. The deal is part of Provimi’s strategy to concentrate more on its farm animal feed and nutrition business, according to the company.
Provimi Pet Food is a producer of private label wet and dry pet food in Europe, supplying approximately 280 customers, including major grocery retailers, in the 27 markets in which it operates. The business, headquartered in Budapest, Hungary, has around 1,000 employees and eight production facilities across Europe. In 2010, the company reported total sales of about $334 million.
Provimi’s CEO Tom van der Laan said Provimi Pet Food is well-positioned to capitalize on positive market trends and strengthen its market position in Europe—all of which could best be supported under different ownership.
Advent International, which has offices in Europe, North America, Latin America and Asia, is expected to support Provimi Pet Food’s growth plans and explore potential opportunities in new markets and new product development.
“Provimi Group has established PPF as a European market leader,” said Chris Mruck, managing partner and co-head of Advent International’s Central Europe operations. “Our investment will build upon these strong foundations, enabling the business to capitalize on the growth opportunities that exist across Europe.”
The transaction is expected to close within two months, following regulatory processes. Provimi Pet Food’s management team will remain with the business.
The sale will enable Provimi to focus on growth opportunities for its core business of farm animal nutrition, van der Laan said.
“The sale of the pet food activities completes the process, started with the disposal of the fish feed activities, of focusing Provimi on its core animal nutrition business in swine, poultry and ruminants,” he said.
This core business has been sustainably expanded through acquisitions in Columbia and Mexico and organic growth in Brazil, Russia and Asia, he added.
The proceeds from the sale of Provimi Pet Food will be used to reduce Provimi Group’s net debt, the company reported.