The deal, which is subject to the normal regulatory approvals, is expected to close this summer.
“We knew Ekol Gida to be a respected provider of premixes and feed additives in the Turkish market. As we evaluated ways of expanding our presence in the market, its name kept surfacing as a top company with which to partner.
We did not have a commercial relationship with the firm when we began our conversations with them. But we have clearly recognized synergies between the two companies and are confident that together we can deliver valued nutritional solutions to the Turkish market,” Mark Poeschl, VP and group director of Cargill’s animal nutrition business, told us.
He said the operation will leverage the Turkish company’s established customer network in premixes and feed additives as well as its deep market knowledge.
The transaction, he added, is aligned with Cargill’s animal nutrition business’ growth strategy.
Poultry and dairy sector focus
The agribusiness group said it also wants to strengthen its commitment to Turkey as a primary growth market by building technical application research centers targeted at the dairy and poultry sectors in an effort to boost local market capabilities and enhance locally applicable innovation, knowledge transfer, farmer education programs and industry partnerships.
“As is the case in developing markets globally, dairy and poultry producers in Turkey are seeking ways of improving their operations whether it is in farm efficiency, animal productivity, overall farm profitability or animal protein quality.
We believe that with Cargill’s global experience and commitment to innovation and research and Ekol Gida’s respected presence in the market, we will help farmers in Turkey address their production challenges and improve their overall businesses,” said Poeschl.
He said Cargill has not yet determined specific timelines around the development of the technical research centers: “We will firm up those details after closing.”
The commercial focus will be on Turkey and selected export markets and the management team of Ekol Gida will remain in place, he said.
After a transitional period, the Ekol Gida business will come under the global Provimi brand, added Cargill.
It has been active in Turkey since 1960 through a local partnership agreement and commenced trading as Cargill in 1986. The company has over 400 employees in six locations in Turkey including Istanbul, Bursa, Balıkesir, Izmit, Adana and Ankara.