BRAZIL – Dutch animal nutrition company, Royal De Heus has signed the agreement to acquire its Brazilian peer Cerrado Nutrição Animal, for an undisclosed sum.
Located in Itaberaí, central Brazil, Cerrado Nutrição Animal produces a range of dairy and beef products such as complete feeds, concentrates, nucleus, mineral supplements and mineral protein supplements.
With a manufacturing capacity of 50,000 tonnes/year, Royal De Heus believes that Cerrado Nutrição Animal has a strong regional position, especially in the market for beef cattle in the Brazilian Midwest.
De Heus said that the acquisition will further enable the company to strengthen its position in the Brazlian market following its recent construction of a dedicated feed factory for young animals in Toledo, with a focus on piglets and one-day-old chickens.
The company entered the Brazilian market in 2012 after it acquired a pig feed company and later bought another feed factory in Apucarana.
Its opening of a greenfield factory for the production of an exclusive nutritional supplement, called MUB – further positioned De Heus as an innovative company in the Brazilian beef cattle market.
“Both De Heus and Cerrado Nutrição Animal perform well in the challenging Brazilian animal nutrition market. Therefore, this acquisition allows us to contribute to the growth and professionalization of existing and new customers especially in the Midwest region,” Rinus Donkers, director of De Heus Brazil & Latin America.
“By combining forces we make the international knowledge and experience of De Heus accessible to livestock farmers in this region.
“The acquisition also aligns with the strategy of De Heus Brazil to produce its ruminant products as close to its customers as possible and increasing synergy in the supply chain.”
Post-acquisition, the founder of Cerrado Nutrição Animal, Antonio Pedroso, will be responsible for sales and customer relationships and will continue to play an important role in the further expansion of the company.
“I am pleased with the take-over by De Heus. With its in-depth animal husbandry and nutritional knowledge, De Heus further enhances our innovation capabilities,” says Mr. Pedroso.
In December last year, the De Heus also secured a deal to acquire Evialis Galicia, a Spanish compound feed plant owned by Archer Daniels Midland Company (ADM).