Dutch animal feed maker ForFarmers has announced plans to sell its Belgian compound feed unit to agricultural and horticultural expert Arvesta.
As part of the deal, Arvesta will take over both the approximately 80 employees, who produce and sell approximately 420k tonnes of feed, and the production site in Izegem in West Flanders.
In addition, the mill and site in Ingelmunster are also included in the transaction. Arvesta already has production sites for professional feed in Aalter, Merksem, Kortrijk, Andenne and Hombourg.
The two companies will work together in the broiler sector in Belgium, with ForFarmers continuing to produce feed in the Netherlands, so as to continue deliveries to broiler farmers among other things.
In addition, Arvesta will transfer its feed activities in the broiler sector in the Netherlands to ForFarmers.
The sale of co-products, the activities in Belgium of the organic feed producer Reudink, and the horse feed producer Pavo are not included in this transaction.
The Transaction
ForFarmers is to receive a net amount of €25 million from Arvesta for the transaction, which will be paid in cash at closing of the transaction in the second half of 2023.
The transaction is subject to approval of the Belgian competition authority.
The expansion of activities in its home market would help Arvesta cater to its customers better, both in terms of the continuity of the businesses as well as the transition of the sector, accoring to ForFarmers.
'This acquisition is entirely in line with Arvesta’s continued strategy and strengthens its position in the Belgian market in favour of the customer in order to further build the agriculture of tomorrow,' the company noted.
© 2023 European Supermarket Magazine – your source for the latest supply chain news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.
