USA – Archer Daniels Midland Company (ADM) has announced that it has successfully completed the deal to acquire Neovia, a global provider of value-added animal nutrition solutions in a transaction estimated at US$1.76 billion.
The transaction creates a combined animal nutrition business regarded to be one of the largest in the world, with sales of up to US$3.5 billion.
According to ADM, the acquisition enhances its leadership in value-added products and solutions for both production and companion animals.
The company’s animal nutrition business encompasses premixes, complete feed, ingredients, pet care solutions, aquaculture, additives and amino acids, serving customers around the globe.
“The addition of Neovia represents a major milestone in the execution of our strategic plan to become a global leader in nutrition,” said ADM Chairman and CEO Juan Luciano.
“This acquisition, our largest since we added WILD Flavors in 2014 instantly creates a premier global leader in animal nutrition, while simultaneously providing a strong platform for future growth.
It meets our returns objectives, expands our geographic reach, and helps us continue to expand our portfolio and better serve our customers.”
ADM announced intentions to acquire Neovia in July last year, marking another major milestone in the execution of ADM’s strategic plan and portfolio transformation.
The company which also trades in food, beverage, nutraceutical and industrial businesses, acquired WILD Flavors, a Germany based food company that produces natural ingredients for food products.
ADM has no strong footprint in aquaculture but is set to benefit from Neovia’s holistic approach to that business which includes feed and management of ponds.
“The acquisition of Neovia marks an important new chapter for ADM Animal Nutrition,” said Pierre Duprat, president, ADM Animal Nutrition.
“I have been fortunate enough to meet with talented colleagues from Neovia over the last six months, and I am excited about the global platform this combination of our existing capabilities and Neovia has created to serve our customers and accelerate our growth.
Combining our resources, expertise, innovation and research-driven technologies creates something very special: the premier global provider of animal nutrition ingredients and solutions, best-in-class customer service and leading R&D capabilities for our animal nutrition customers across the globe and creating value for our shareholders.”
The company’s most significant expansions and investments include:
*Building and renovating three specialty animal nutrition plants in China and four plants in the U.S.;
*Acquiring pet treat manufacturer Crosswind Industries;
*Expanding pet food ingredient manufacturing capabilities in North America
*Investing in state-of-the-art value added complete feed manufacturing facilities in North America
*Entering into a partnership with China-based Qingdao Vland Biotech Group and building a cutting-edge research lab in California to develop and commercialize animal feed enzymes;
*Purchasing Protexin, a leading provider of probiotic supplements for human wellness as well as a variety of animal markets, including aquaculture, equine, livestock and companion animals.
