March 30, 2011
Nutreco may buy over Provimi in 2011
Dutch animal nutrition and fish feed company, Nutreco, may buy smaller competitor Provimi in the course of the year, predicted an analyst.
The analyst sees the prospective agreement as the last step of UK private equity firm, Permira, to fully leave Provimi after the declared sale of its pet food business.
It is believed that Provimi may be worth EUR1.3 billion (US$1.8 billion).
According to the analyst, Provimi's left over activities, including premix and feed specialities, would provide an excellent fit to Nutreco, which is looking to grow mainly in this market segment.
The analyst anticipates also major synergy effects from a possible business combination that will also activate Nutreco's expansion plans.