Cargill to Buy Animal Nutrition Co. for $2.16B
Wayzata-based Cargill, Inc., on Monday announced that it has made a binding offer to acquire animal nutrition company Provimi for about $2.16 billion from private equity firm Permira.
Cargill said that Netherlands-based Provimi agreed to the deal and is seeking the necessary regulatory approvals.
According to Cargill, the deal aligns with the company's plans to expand its animal nutrition portfolio: “This acquisition would mark a significant step in Cargill's animal nutrition growth strategy and underlines our commitment to continued long-term investment to meet the needs of our customers around the world,” Paul Conway, Cargill vice chairman, said in a statement.
Cargill said that it will take advantage of Provimi's nutritional expertise and variety of products to break into the emerging markets of Latin America, Russia, and Asia. Provimi currently operates in 26 countries and employs more than 7,000 people.
Provimi said in a news release that the acquisition will grant it access to Cargill's business expertise, efficient production base, and new markets.
“With Cargill's global presence and committed focus on animal nutrition, we can take Provimi to the next stage of its development,” Ton van der Laan, chairman and group CEO of Provimi, said in a statement.
Provimi's revenue totaled approximately $2.33 billion, in 2010-up 10.8 percent from 2009. Cargill, meanwhile, is Minnesota's largest private company based on revenue, which totaled $107.9 billion in the company's 2010 fiscal year.