Agricultural and industrial company Cargill Inc. offered to buy animal nutritional feeds maker Provimi for 1.5 billion euros from the private equity firm Permira Funds.
The acquisition would be one of the biggest buys made by Minneapolis-based Cargill in recent years. Provimi has worldwide animal nutrition business operations in 26 countries and employs more than 7,000 people across Asia, Europe, Africa and Latin America. The company had annual sales of 1.6 billion euros in 2010.
Provimi has agreed, on an exclusive basis, to commence the necessary Works Council consultations and appropriate regulatory approvals. According to Cargill, the acquisition would strengthen and expand its existing operations creating a global leader in animal nutrition.
Cargill vice chairman Paul Conway said, “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.”
In April 2007, London based Permira acquired majority stake in Rotterdam, Netherlands-based Provimi from CVC Capital Partners and PAI Partners. After the acquisition, Permira sold off Provimi’s aqua feed and pet food business and made other strategic acquisitions, which include NASSA, a Mexico-based swine and shrimp feed producer, as well as Colombia-based premix producer Biovet S.A.