NMR is focused on milk linked data, generating insights relating to milk quality, fertility, genomics, and health.
The acquisition, which is expected to be completed in Q3 2023, values the entire issued and to be issued ordinary share capital of NMR at around £48m, on a fully diluted basis
AB Foods said that it had already received backing for the deal from investors holding about 69% of shares, close to the 75% limit needed to support the acquisition.
AB Agri is actively looking to add new, complementary capabilities through M&A. In December last year, it bought dairy focused business, Kite Consulting, and its associated company, Advance Sourcing, for an undisclosed sum.
Efficiency, productivity boost
NMR’s business, said the company, is well aligned with AB Agri’s objective of supporting customers across the dairy industry, helping to drive efficiency and increase productivity.
José Nobre, chief executive of AB Agri, said: “NMR is a high-quality business which is extremely complementary and additive to our dairy strategy and offering to the dairy industry. We have supported dairy farmers for more than 30 years with nutrition and specialty feed products, and more recently with data and technology platforms which deliver insights that create continuous improvement in agricultural supply chains. Acquiring NMR is an extension of this strategy and will enable us to service the industry better.”
Commenting on the deal, Trevor Lloyd, NMR chair, said the backing of ABF will accelerate and de-risk NMR’s ability to deliver its strategic objectives, streamlining industry processes by creating a holistic business that can provide end-to-end data and analysis to ensure the long-term sustainability, efficiency, and profitability of UK dairy.
"ABF's and AB Agri’s status within the UK agricultural sector and expertise in the dairy industry will provide a significant benefit to NMR’s customers. As the UK dairy supply chain continues its drive to carbon neutrality, NMR’s work with GenoCells and milk data, and our pivotal role in payment testing, will contribute important information to aid in this transition.”