When asked what the rationale behind the acquisition of the premix firm, a spokesperson for DSM told FeedNavigator:
“The geographical location of Twilmij was important. DSM does not actually have a huge number of premix facilities in the Netherlands so this acquisition addresses that.
“It is also a very well-known and well-established player in the premix market.
“Moreover, the revenue trajectory of Twilmij has been impressive, exceeding the organic growth rate of the market.”
Twilmij, which is based in the center of the Netherlands and close to the German border, realizes premix production in the region of 50,000 tons per year and generates annual net sales of around €70m, said DSM.
“In terms of its product portfolio, we see lots of synergies,” added the spokesperson.
Twilmji targets the pig, poultry and ruminant sectors, with premixes, milk substitutes and specialty products. It has a particular focus on young animal diets. It is said to be in the top three in the Netherlands and has a substantial market share in north-west Europe.
The spokesperson said the bespoke feed packaging service provided by Twilmij’s affiliated company Kwalipak, was also part of the appeal. That division offers specialty small-pack solutions for specific applications for the feed industry.
“DSM will be retaining all of the employees at Twilmij,” he also confirmed.
The spokesperson would not disclose any of the financial details of the deal, which is subject to the customary conditions, but is expected to close in the next two to three months.
Animal nutrition segment 'performing'
In its financial results for the first half of 2017, released at the start of last month, DSM said its animal nutrition business continued to make good progress and business conditions for animal nutritional remained good across most regions during H1 2017, with the exception of Latin America.
“In the first half of 2017, the premix businesses continued to demonstrate healthy growth… the emerging need for alternative solutions to enable the ultimate elimination of antibiotics as growth promoters supports growth in higher added-value solutions in, for example, eubiotics and enzymes,” it noted.
It also reported that its Q2 2017 animal nutrition volumes were up 2%. “Excluding the effect of the ongoing meat scandal in Brazil of around €20 million on Q2 sales, volumes would have been up 5%, in line with DSM’s growth trend in recent years. Prices in Q2 were overall stable when compared to the same period last year.”