Alltech investigates possible acquisition of Irish feed machinery firm
The statement from the global animal nutrition group follows recent media speculation about its interest in Keenan System, a Carlow based machinery firm that has suffered financial losses of late and is insolvent.
That family-owned company has a "long track record" in the manufacture of diet feeders and mixer wagons that aim to produce an optimal mix of feed for cattle with the goal of increasing yield and quality from herds. Keenan also provides a technology based review and support service to farmers.
Alltech said it “has identified various growth opportunities in the on-farm performance arena and believe Keenan could offer further technological advancement for moving farmers towards greater efficiency and profitability.”
Keenan’s export business would generate synergies between the two companies in any such deal, it added.
The equipment firm has sales in 25 countries and it employs 222 people, of which 176 are based in Ireland.
Kieran Wallace and Cormac O’Connor of KPMG were appointed as joint receivers to the equipment manufacturing business yesterday.
They said they are confident the discussions underway with Alltech to acquire the business will progress to a successful conclusion, subject to “appropriate due diligence”. Such an acquisition, they added, would secure the business and jobs.
Industry sources said Keenan has been seeking outside investment for the past 12 months.
Asset trail
Last year saw Alltech acquire a number of assets. In November 2015, it announced it was to take ownership of Canada’s Masterfeeds.
The opportunity to do so came about through Alltech’s acquisition of US feed nutrition producer, Ridley, a few months earlier.
Ridley had a 30% shareholding in the Canadian feed maker, which gave Alltech the footing to, subsequently, purchase all remaining shares in Masterfeeds.
Meanwhile, in July last year, Alltech extended its reach in the Norwegian dairy and aqua markets through the purchase of Produs and Produs Aqua.
And, in February 2015, it bought UK farm environmental assessment tool provider, E-CO2.
