Two deals announced in first week of July
ForFarmers B.V. has expanded in the U.K. with an acquisition, and is expanding its organic feed production through a separate collaboration.
ForFarmers has acquired 100 percent of the share capital of Wheyfeed Holdings Ltd., which owns Wheyfeed Ltd. Wheyfeed Ltd. is based near Nottingham and sells and distributes more than 200,000 tons of liquid co-products throughout the U.K. and operates a fleet of 35 liquid tankers. The company has a staff of 82 and in 2013 revenues amounted to €12.52 million (US$17.0 million). The price is based on a net enterprise value of €5.0 million (US$6.8 million). The acquisition will contribute to ForFarmers earnings per share in 2014. Wheyfeed Ltd. will become part of ForFarmers’ U.K. business.
“This acquisition builds on ForFarmers Total Feed Business approach; the ability to provide livestock nutrition in whatever form our customers require it,” Iain Gardner, ForFarmers COO (UK) said. “Liquid co-products sourced from the food, drink and biofuel industries form an important part of many livestock farmers’ nutritional inputs. The animal feed sector provides the food industry with a highly sustainable market for these materials. The acquisition of Wheyfeed Ltd. represents a significant addition to our existing portfolio of co-products, straights and minerals and will enable us to offer a wider range of products to our customers in the ruminant and monogastric markets.”
The acquisition is consistent with ForFarmers’ growth strategy and its objective to consolidate and expand its leading position in its markets.
In a separate deal, Reudink, part of ForFarmers, will start producing the organic cattle feed for Agrifirm, effective October 1. Reudink and Agrifirm’s market operations will remain completely separate from each other.
All of ForFarmers’ organic cattle feed activities have been combined under the Reudink name since 2013. The company is located in Lochem, where it has a modern production facility at its disposal which produces organic mixed feeds, with plenty of possibilities for expansion and product development.
Reudink produces organic feed for cattle, pigs and poultry. The quality of the production facility, the available knowledge, and production capacity were part of the reason why Agrifirm decided to ask Reudink to look after the production of its organic feeds. This has resulted in Reudink’s production facility now being used more effectively and allows Reudink to produce the feeds more efficiently.