With 35% of the liquid feed market in France, Dielna leads the segment.
The company produces around 35,000 metric tons of that product on an annual basis, mainly out of its Bourg Beaudouin plant near Rouen.
It said the acquisition of the number two player in the segment would only strengthen its standing and reach in France.
The deal gives Dielna access to Brittany and to the southern part of Pays de la Loire, two of the main French centers for the dairy industry - Provimi’s liquid feed activity is run out of two production sites, the principal one is located in Mayenne, at Saint-Aignan sur Roé in North-western France.
Provimi also has a network including the 50 main distributors in France.
Dielna, which was established in 1989 and has an annual turnover of €9m, said the merging of the two businesses would create industrial and logistic synergies, in tandem with increased R&D facilities for trial work.
Liquid feeds, according to Dielna, play an essential role in improving the digestibility of forage, reducing feed sorting by the animals and meeting their sugar requirements.
Paul Cuenca, chair of Provimi France, which is part of Cargill, said the sale of its liquid feed operations is part of the company’s rationalization strategy, with divestment of non-core activities central to that.
“This takeover by a company specializing in liquid feed will secure the long-term development of this business.”
Provimi France has a 23% share of the animal nutrition market in France. Its range includes premixes and speciality feeds, including minerals and additives.