SHV Holdings moves to acquire Nutreco

October 20, 2014

From WATTAgNet:

Dutch investment firm SHV has reached a conditional agreement to buy Nutreco for EUR2.7 billion (US$3.4 billion), according to reports.

The offer of EUR40 per share is a 42 percent premium to the stock’s closing price October 17 and is conditional on SHV acquiring all Nutreco shares. The agreement could be terminated if a third party bids 8 percent or more above the offer price. If Nutreco were to terminate the acquisition and pursue a rival deal, it would pay a one-off fee of EUR25 million.

Nutreco said it has received guarantees from SHV that it would continue to develop its growth strategy, including acquisitions, and that it would keep its headquarters in the Netherlands.

"SHV will be an excellent partner, enabling us to maintain our corporate identity, culture, values and organization," said Knut Nesse, CEO of Nutreco.

According to the agreement, SHV would pay for the acquisition in cash from its own resources. The offer for Nutreco shares is expected to open in the last quarter of 2014. Nutreco’s executive and supervisory boards accept the offer, which is subject to regulatory approval.

Nutreco employs 10,000 people in 30 countries and had sales of EUR5.2 billion in 2013.

Dutch investment firm SHV bids 2.7 billion euros for Nutreco

The offer of 40 euros per share is a premium of 42 percent to the stock’s closing price on Friday and is conditional on SHV acquiring all Nutreco shares. Nutreco, which had 2013 sales of 5.2 billion euros, said it had received guarantees from SHV that it would continue its growth strategy, including acquisitions, and that it would keep its headquarters in the Netherlands. ING Corporate Finance is acting as financial adviser to Nutreco.

Nutreco’s $3 bln buyout shows value of food chain

The author is a Reuters Breakingviews columnist. A $3.4 billion buyout of Nutreco highlights the value in the food chain. A wealthy Dutch family is planning to gobble up the Amsterdam-listed animal and fish-feed specialist. That’s a reasonable 34 percent premium to the average closing price over the last three months.