The Danish company, which was set up 1994, sells traded commodities, liquid vitamins, premix, milk replacers and soy protein supplements.
AB Agri said it recognizes the increasing market need for high quality protein ingredients that have a strong technological component, and AgroKorn’s portfolio appealed on that basis.
Alan Murphy, new ventures director with the UK group, told us AgroKorn will continue to operate as a stand-alone entity, but it will “utilize the capability, resource and support of AB Agri’s central functions and expertize where appropriate.”
AB Agri, part of Association British Foods and valued at £1.2bn ($1.74bn), said it also plans to leverage synergies and relationships with other key businesses in the group to accelerate “the sales potential” of the Danish company’s portfolio, particularly the milk replacer range.
The Danish firm’s mink related activities,however, were not acquired in the deal.
AgroKorn initiated sales of its additives range outside of Denmark in 2009 and its products are sold in 25 countries now, but mainly across Europe, said Murphy.
“It is in good financial health. AgroKorn continues to be a successful and profitable business,” said the AB Agri representative.
But the two companies, said Murphy, see multiple opportunities in developing new markets for AgroKorn’s Alphasoy 530 and 510 supplements. The targets are the pig, poultry and aquaculture segments in South East Asia, Latin America and key European regions.
In terms of why North America is not on the hit list, Murphy said: “It will be in time, but our immediate priority is where there is an existing infrastructure to develop the potential for new generation proteins, and where we have already realized significant demand.”
Murphy said the UK group plans to invest in the newly acquired company’s production site in Denmark. “We will work with our Agro Korn colleagues to modernize and improve technology where appropriate.”
The Danish producer collaborates with the University of Copenhagen and Aarhus University in its R&D trials. It said it is currently evaluating, in conjunction with its academic partners, new methods for extracting oil from rape, ways to manufacture protein concentrates from peas, broad beans and lupins, as well as ongoing work on quality plant based feed proteins.