Nutreco expands footprint in Canada and creates new base in US with purchase
Nutreco will acquire Hi-Pro Feeds, an animal nutrition supplier with operations in Western Canada and Southwest U.S. The acquisition is subject to regulatory approval in Canada and the U.S. and is expected to close in the second half of 2017 at the latest.
Hi-Pro Feeds is a full-service animal nutrition supplier, supplying complete and specialty feeds, premixes, concentrates and commodity ingredients mainly in Western Canada and Southwest U.S. It operates 15 mills and is headquartered in Okotoks, Alberta. Birch Hill Equity Partners is the current majority owner. They own Hi-Pro Feeds together with the company’s employees, more than 80 percent of whom have invested in the company.
“We consider Hi-Pro Feeds as a very exciting company with a good reputation and solid management,” said Knut Nesse, CEO of Nutreco. “In Canada, this acquisition will make us a truly nationwide animal nutrition company with a good presence in all regions and livestock segments. In the U.S., this deal creates a new base for Nutreco, particularly in the dairy and beef industry in the Southwest.”
“Hi-Pro Feeds is renowned for its lean, agile and customer-centric operational model. Combined with Nutreco’s innovation strength and nutritional solutions consisting of a wide range of models, products and services, I am confident that we will create extra value for our combined customer base in the whole of Canada,” said Jacques Leclerc, managing director of Nutreco Canada.
“In Nutreco we have found a good steward for our business and we are excited about the opportunities that this brings to our customers and employees. As a global company, Nutreco has the resources and network available to create additional value for our customers through an expanded offering of proprietary models, products and services,” said Daren Kennett, founder of Hi-Pro Feeds.
The leadership team consisting of Daren Kennett, Mark Knief and Jeff Dykstra will continue to manage the Hi-Pro Feeds business in Canada and the U.S. The strength of the combined Nutreco and Hi-Pro Feeds’ leadership team will allow Hi-Pro Feeds CEO, Dean Prevost, to transition his responsibilities over time.
Lazard Middle Market and CIBC Capital Markets acted as advisers to Hi-Pro Feeds.