‘It will bring us leadership in the trace mineral segment’ - Nutreco to acquire Micronutrients

By Jane Byrne contact

- Last updated on GMT

‘It will bring us leadership in the trace mineral segment’ - Nutreco to acquire Micronutrients

Related tags: Dietary mineral

Dutch player, Nutreco, has entered into a deal with The Heritage Group for the hydroxyl-based trace mineral producer, Micronutrients.

“This acquisition [of Micronutrients] will accelerate growth of our feed additives portfolio. It will bring us leadership in the trace mineral segment, and this will be aided by the specific R&D expertise we have in this area. In addition, [the acquisition] will also support our global premix value proposition through the use of less reactive minerals, which has a positive influence on animal performance,”​ Martijn Adorf, managing director of Nutreco’s feed additives business unit, told FeedNavigator.

The US based Micronutrients, he said, has carved out an interesting segment within the trace minerals category, and has grown at a fast rate in recent years, particularly in the US poultry and swine sectors.

The trace minerals producer is also successful in other regions outside the US, including the EU and Brazil, through distributors, said Adorf.

“In addition to further growth in the US market, Nutreco’s capabilities and global organization will enable the Micronutrients business to develop further outside the US,” ​he said.

The transaction, which is subject to the standard regulatory approvals, is expected to close in the first quarter of 2016.

Leveraging new feed segments

Pat James, CEO of Micronutrients, said Nutreco has the resources and network to accelerate the growth of the US producer by means of geographical expansion, and also by targeting additional animal species.

A spokesperson for Micronutrients told FeedNavigator at the IPPE show in January last year that it was hoping to enter the global aqua feed segment.

“In the longer term, the R&D power of our new owner will further allow Micronutrients’ technological platform to evolve,” ​said James.

The US firm claims its trace minerals have optimum covalent bond strength, which protects them in feed and the upper digestive tract, allowing for less reactivity and targeted availability.

Nutreco’s current animal nutrition business product portfolio already includes organic trace minerals along with premixes and betain.

The Dutch group is likely to continue on the asset trail, with CEO Knut Nesse, telling us in May this year that Nutreco was eyeing two to three potential acquisitions over the next 12 months.

“In the past ten years we have more than doubled our business, with acquisitions playing a key part in that, so we intend to continue with such a growth strategy.”

Nutreco itself was bought by private investment firm SHV back in March 2015.

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