“FrieslandCampina Ingredients wants to focus exclusively on healthy food and solutions for consumers in all stages of life. Animal Nutrition does not fit in so well [in that strategy]. That is why we went looking for a company specialized in young animal nutrition with international growth ambitions,” a spokesperson for the multinational dairy cooperative told FeedNavigator in terms of the rationale for the divestment.
The business being acquired includes around 80,000 metric tons of young animal feeds. It includes well-known Nutrifeed brands, calf milk replacers like Kalvolac and Serolat, piglet milk replacers like Porcolac Extra and lactose concentrates like Serolat, among others, along with a production facility in Veghel, in the Netherlands.
"Nutrifeed’s business is very much complementary to that of Denkavit looking at the countries and regions where both entities have the highest percentage of sales," Henk Botter, commercial director, ingredients and feed specialties, Denkavit, told us.
He said the merged businesses would see a myriad of benefits from combined expertise, an enhanced distribution network, improved raw material availability, and boosted research facilities.
The proposed acquisition is subject to customary conditions. Financial details have not been disclosed.
The parties expect the deal to be finalized by mid-2021.
With over 16,995-member dairy farmers in the Netherlands, Germany, and Belgium, FrieslandCampina is one of the largest dairy cooperatives in the world. An additional agreement between the Amersfoort, Netherlands headquartered agribusiness and Denkavit will create "added value" opportunities for the cooperative's dairy side streams.
Access to such raw material supplies aligns well with Denkavit's circularity ambitions, noted Botter.