The agribusiness group said the acquisition will strengthen its hand in the $20bn global animal feed additives market.
The purchase comprises all of Diamond V’s business, including the human health division, Embria Health Sciences.
Diamond V’s headquarters will remain in Cedar Rapids and Cargill said it will retain the brand name.
The companies did not disclose the financial aspects of the deal, which is expected to be finalized in January next year, subject to regulatory approval and customary closing conditions.
Cargill said Iowa-based Diamond V has a 75-year history and global reputation for research-proven immune support technologies that work naturally with the biology of the animal to strengthen the immune system and promote a healthy digestive system to enhance animal health, animal performance, and food safety.
In 2016, the two companies formed an alliance to capitalize on what they saw as the dynamism in the Russian livestock sector.
The collaborative exercise, they said, was aimed at helping Russian dairy producers, in particular, access global expertise on how to improve rumen fiber digestion and achieve better synthesis of rumen microbial protein.
What it meant in practice was that Diamond V’s nutritional platform was “incorporated” into Cargill’s animal nutrition products and services under the Provimi brand in Russia.
Jason Shelton, managing director of Cargill Animal Nutrition in Russia, told us then: “In a period of variable economic returns for dairy producers, the need is greater than ever for efficient production while supporting overall cow health.”
He said that as the Cargill and Diamond V partnership in Russia grew, the plan would be to leverage emerging opportunities for value-add dairy NPD. “In addition to dairy, however, the Russian swine and poultry industries, both of which already are among the top half dozen in the world, are ripe for new innovations and technology.”
The takeover of Diamond V follows the announcement in July this year of a strategic partnership between Cargill and phytogenic producer, Delacon. That deal also saw Cargill take a minority stake in the Austrian firm, but additional terms of that arrangement were not revealed.
Cargill told us then that it was interested in expanding its presence in the global micronutrient space.
“Our end consumers are increasingly looking for sustainable, wholesome food derived from natural origins.”