ForFarmers has received approval from the Belgian Competition Authority for the sale of its Belgian compound feed activities to Arvesta. ForFarmers announced its intention to sell the unit in April.
Arvesta will take over the compound feed activities, employees, production location in Izegem and factory location in Ingelmunster in West Flanders from ForFarmers Belgium. These locations will join Arvesta’s feed production in Aalter, Merksem, Kortrijk, Andenne and Hombourg. The ForFarmers sales activities in Belgium of co-products, Reudink's organic feeds and Pavo's horse feeds are not part of this transaction.
The transaction will be completed in mid-October. ForFarmers will then receive a net amount of EUR25 million (US$26.5 million) in cash from Arvesta in accordance with the purchase and sale agreement.
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 announcing the sale in April.
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.