ADM to acquire French animal nutrition business Neovia for €1.5bn
ADM acquisition of Neovia : US food processing company Archer Daniels Midland (ADM) has agreed to acquire French animal nutrition business Neovia for €1.535 billion in a move to create a leading global manufacturer of value-added animal nutrition solutions.
Headquartered in Saint-Nolff, Britanny, Neovia, a manufacturer of value-added animal nutrition solutions, boasts of 72 production plants and has a footprint across 25 countries.
The French animal nutrition business, which was founded in 1954, manufactures and sells a variety of of nutrition products for the feed industry. It operates in business lines such as premix and value-added services, pet care, aquaculture, additives and ingredients, and complete feed.
Majority owned by InVivo, a French agricultural cooperative group, Neovia employs more than 8,000 employees and had sales of €1.7 billion last year. The French animal nutrition business has 11 R&D centers across six countries. However, it doesn’t have much footprint in the US with over 75% of its sales coming from outside Western Europe, which makes its footprint to complement that of ADM’s.
Commenting on ADM acquisition of Neovia, Juan Luciano – ADM Chairman and CEO, said: “The acquisition of Neovia would be a major step as we continue to execute the value creation strategy we first outlined in 2014.
“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.”
On the other hand, ADM has introduced premix and aquaculture capabilities to its Animal Nutrition business in Asia, constructed new, state-of-the facilities across North America while foraying into pet treats last year. Earlier this year, the US food processing company merged its human and animal nutrition businesses into to offer comprehensive nutrition solutions as a single business unit.
Thierry Blandinieres – CEO of InVivo, commenting on ADM acquisition of Neovia, said: “This transaction is a great opportunity for both Neovia and ADM to establish what will be a global leader in animal nutrition solutions. ADM will pursue partnerships with French cooperatives and reinforce its relationships with the French agricultural world.
“At the same time and in line with our strategy ‘2025 by InVivo’, the sale of Neovia will enable us to accelerate our transformation by favoring investments in our growth levers: agriculture, agribusiness & wine, and retail & digital, in France and abroad.”
Subject to regulatory approvals and completion of other mandatory processes, ADM acquisition of Neovia is anticipated to be completed by Q4 2018.