Deal creates poultry feed organization with presence in Netherlands, Belgium, Germany
The required permits have been granted by the Dutch and German competition authorities and other conditions have been met. The combination of ForFarmers and De Hoop creates a poultry feed organization with a leading position on the broiler market in the Netherlands, Belgium and Germany.
ForFarmers acquires the shares in De Hoop’s compound feed business and its related transport activities as well as the mill with adjacent real estate. The acquisition price comprises a fixed amount of EUR23 million (US$27.7 million) and a conditional payment of at maximum EUR17 million, subject to the realization of agreed targets for the combined new organization. The fixed amount will be paid in cash at closing, while the conditional payment will potentially take place in 2023.
The maximum takeover price takes into account the existing market circumstances and has been based on a multiple (on EBITDA) that matches the historical range that ForFarmers has paid for acquisitions.
The new entity will be managed by Michiel Schreurs, director of poultry at ForFarmers Netherlands, together with the previous owner of De Hoop Mengvoeders, Gert-Jan Buunk, who will be responsible for the broiler sector.
According to Feed Strategy’s Top Feed Companies database, ForFarmers N.V. is among Europe’s largest feed producers. The company produces and supplies regular and organic animal feed and commodities (such as arable and grassland management products) mainly in the cattle, pig and poultry sectors. A network of subsidiaries and partnerships rounds out operations that include 35 production facilities in the Netherlands, Belgium, U.K. and Germany. In addition to compound feeds, ForFarmers’ feed division also includes minerals, additives, fertilizers and seeds. It produced more than 10 million metric tons of animal feed in 2019.