Nutreco Agrees to Sell Hendrix to ForFarmers21 November 2011
NETHERLANDS - Nutreco has signed an agreement on the intended sale of Hendrix to ForFarmers.
Last week, Nutreco and ForFarmers have signed an agreement on the intended sale of Hendrix to ForFarmers for a total consideration of €92.5 million, resulting in a book profit at completion. As part of the transaction, Nutreco and ForFarmers have entered into a long-term strategic partnership, including a know-how agreement.
Nutreco and ForFarmers plan to conclude a definitive agreement upon completion of required consultation with the relevant works councils. It is expected that completion of the transaction will take place in the first quarter of 2012 upon ForFarmers gaining regulatory approval from the European anti-competition authorities and shareholder approval. Approximately 690 employees that work for Hendrix will transfer to the new owner.
Hendrix is a leading supplier of compound feed in the Netherlands and Belgium with a strong regional market position in Germany. Hendrix operates 10 production facilities with total capacity of 2.5 million tonnes that are located in regions with high demand for compound feed. Its compound feed products for pigs, ruminants, poultry and horses are sold under well-known brand names. Hendrix has an extensive and well-functioning dealer network. In 2010 revenues amounted to approximately EUR 830 million.
Wout Dekker, CEO of Nutreco, commented: "The intended sale of Hendrix to ForFarmers is in line with Nutreco's strategy to participate in the consolidation of the compound feed industry in mature markets such as the Netherlands and Belgium. After intensive examination of the strategic options, we came to the conclusion that in a consolidating market, the sale of Hendrix to ForFarmers provides best future opportunities for Hendrix and its stakeholders. ForFarmers is a strong and excellent new owner for Hendrix and a long term strategic partner for Nutreco."
Bert-Jan Ruumpol, CEO of ForFarmers, said: "The combination with Hendrix is a great step towards realising our ambition, to become one of the best and most customer focused animal feed companies of Europe. In order to continuously improve, we want and need to grow. We aim to make an optimal contribution to the return on farms. This can only be achieved if you have the best knowledge and people at your disposal. As a partner of Nutreco, we can also make use of Nutreco's global knowledge. With a flexible, internationally growing organisation, we are a challenging working environment for all employees and dealers."
ForFarmers is an international company that is committed to taking corporate sustainability to the next level. It produces and supplies regular and organic feed and commodities such as arable and grassland products, focusing mainly on the cattle, pig, poultry, arable and contract work sectors. Besides its products, it also offers customers an additional package of services, ranging from comprehensive advice to assistance with business development. ForFarmers sells its feeds in the Netherlands, Belgium and Germany.
ForFarmers operates 10 production facilities in the Netherlands and Germany, is headquartered in Lochem, the Netherlands and employs 840 people. It holds a majority stake in Cefetra, an international trading and logistic company for raw materials for feed, food and fuel, and as such an important supplier for the compound feed industry.