Deal includes production facilities in Izegem and Ingelmunster
ForFarmers N.V. said it will sell its Belgian compound feed business to Belgium-based Arvesta for EUR25 million (US$27.4 million). Pending approval from the Belgian competition authority, the transaction is expected to be completed in the second half of 2023.
Arvesta will acquire the production facility in Izegem in West Flanders and the factory in Ingelmunster, where a combined 80 employees produce and sell approximately 420,000 tons of feed. These locations will join Arvesta’s feed production in Aalter, Merksem, Kortrijk, Andenne and Hombourg.
Especially in the broiler sector in Belgium, the two companies will work more closely together, with ForFarmers continuing to produce feed in the Netherlands, among other things, to ensure a smooth continuation of deliveries to broiler farmers, the companies said in a press release.
The sale of co-products, the activities in Belgium of the organic feed producer Reudink and the horse feed producer Pavo are not part of this transaction.
This transaction is in line with ForFarmers’ strategic focus, which emphasizes ecological and economic returns. With the expansion of activities in its home market, Arvesta can assist customers even better in terms of the continuity of the company and the transition of the sector. This acquisition is fully in line with Arvesta’s continued strategy and strengthens its position on the Belgian market for the benefit of the customer in order to continue building the agriculture of the future.
According to Feed Strategy’s Top Feed Companies database, Arvesta, formerly Aveve Group, is a major supplier of agricultural and horticultural supplies in Belgium. To support its feed business, Arvesta operates 80 grain elevators, from which grain or corn is also used to produce flour or bioethanol. Several of the company’s 50 subsidiaries contribute to Arvesta’s feed operations, including Aveve Animal Nutrition, Sabé, Mannheim, Dumoulin, Lannoo-Martens and Voeders Dick. One of Belgium’s largest companies, Arvesta also operates the country’s largest garden center chain.
This year, ForFarmers abandoned a proposed joint venture with 2Agriculture after the United Kingdom’s competition authority raised concerns about reduced competition as a result of the deal.
