November 17, 2011
Nutreco to sell compound feed unit to ForFarmers
Nutreco has agreed to sell its compound feed supplier Hendrix to ForFarmers for EUR 92.5 million (US$124.4 million).
The transaction will bring Nutreco a book profit upon completion, which is expected in the first quarter of 2012.
The deal remains subject to regulatory clearance.
The divestment is in line with Nutreco's strategy to participate in the consolidation of the compound feed sector in mature markets, such as the Netherlands and Belgium, Chief Executive Wout Dekker said.
Nutreco believes also that as part of its new owner, Hendrix will be in a better position to pursue future growth opportunities.
Hendrix operates 10 plants and posted sales of some EUR830 million (US$1117.9 million) in 2010. The company sells its products in Netherlands and Belgium and also in Germany. The company's 690 employees will be transferred to the new owner.