Companies enter into a long-term agreement on the supply of dairy by-streams to the animal nutrition industry
FrieslandCampina intends to sell its Nutrifeed animal nutrition business to Denkavit. The two companies will enter into an agreement for the supply of dairy by-streams to the animal nutrition industry. Employees of the two businesses have been informed about the intention.
“In Denkavit we have found a strong, player with international growth ambitions for our animal nutrition business. Denkavit offers us a good opportunity to create added value for our dairy by-streams. In December 2020, FrieslandCampina decided to fully focus its ingredients business for its customers on high-quality ingredient solutions for consumers in all life stages. As part of Denkavit, an international player with a strong focus on young animal nutrition, Nutrifeed will have better opportunities to achieve its growth ambitions,” said Herman Ermens, president of FrieslandCampina Ingredients.
“With this acquisition, we are further expanding our global market position in young animal nutrition. The agreement for the supply of dairy by-streams improves our position in sourcing raw materials,” said Erik Buys, managing director of Denkavit.
The 70 employees that work for FrieslandCampina’s animal nutrition business will join Denkavit. The employees and trade unions have been informed about the intended decision and the employee representation has been asked for advice. The proposed acquisition is subject to customary conditions. Financial details will not be disclosed. It is expected that the transaction will be completed by mid-2021.