Feedinfo Review Summer 2023 news bites: M&A

Bunge and Viterra announce merger

In June, it was announced that the world’s largest oilseeds processor, Bunge, planned to merge with commodity trading peer Viterra in an $18 billion deal. It is anticipated that the combined group will be worth $34 billion.

Axéréal in exclusive negotiations for sale of animal nutrition business

French agricultural co-op Axéréal revealed in early May that it was in exclusive negotiations to sell its animal nutrition activities to Avril, oilseeds and plant protein giant. If the deal goes through, the assets would be combined with Avril’s animal feed business, Sanders. According to Reuters, Axéréal Elevage had sales of €234 million last year and produced 400,000 tonnes of feed.

Innovad to acquire Herbonis

Belgian animal feed additive firm Innovad announced in late April the acquisition of Herbonis, a Swiss plant-based ingredients supplier and its affiliates, including Wyreside in the UK. Of particular interest is Herbonis’s Panbonis product, described as a plant-based source of the metabolically active form of vitamin D.

dsm to acquire Adare Biome

Also in late April, DSM unveiled plans to acquire Adare Biome, a French developer of postbiotics, from Adare Pharma Solutions for €275 million. While it is understood that the focus of the acquisition is on human health supplements, it is anticipated that these products could be incorporated into premix for feed, as well as being used for pet microbiome management. (Shortly thereafter, DSM’s ongoing merger process completed, and the company is now known as dsm-firmenich).

Alltech takes majority stake in Agolin

In early May, Alltech said it had purchased a majority stake of Swiss company Agolin, which makes plant-based solutions including a methane reduction additive certified by The Carbon Trust for its effects on mitigating emissions of the greenhouse gas.

Methane-reducing algae startup gets seafood investor

Leading Japanese seafood company Nissui Corporation has invested in Australian seaweed start-up Seascape Restorations Australia Pty Ltd (also known as Immersion Group). Established in 2021, Victoria-based Immersion Group cultivates asparagopsis, a red seaweed which contributes to the reduction of methane emissions from ruminants. Immersion Group CEO Scott Elliott said the Nissui investment would allow rapid scaling of the company’s asparagopsis onshore. Moreover, Nissui said it plans to support Immersion Group’s construction of a pilot plant near Geelong in Victoria, Australia and the expansion of its processing bases.

Minerals Firm Qualitech Changes Hands

MidOcean Partners, a New York-based alternative asset manager, has acquired QualiTech, a Chaska, Minnesota-based, family-owned manufacturer of plant nutrition, animal nutrition and food ingredient products and services. The QualiTech Animal Nutrition division mainly supplies organic trace minerals, as well as rumen-protected nutrients, vitamins, palatability enhancers, flavourings and other solutions.

Dechra taken over by Swedish investment firm

UK veterinary medicine company Dechra Pharmaceuticals accepted a takeover offer by Swedish investment firm EQT worth £4.46 billion (approximately $5.62 billion). Dechra claims to be the world’s seventh largest veterinary pharmaceuticals company.

Symrise bids for outstanding shares in Swedish domestic animal firm

Symrise, a German supplier of fragrances and ingredients, has made a bid approach to acquire all remaining shares (70%) in Swedencare AB, a Swedish provider of health products for cats, dogs, and horses, after having acquired a 30% stake in the firm on 25 May. Symrise’s offer values Swedencare at SEK 5.95 billion (approximately $548 million).

AB Agri boosts dairy offerings with two deals

In early June, AB Agri, part of Associated British Foods, announced it would be paying approximately £48 million for the UK’s National Milk Records plc, which offers milk quality, herd health and genomic testing services. Shortly thereafter, the company also unveiled the purchase of IFCN AG, a German dairy research and consulting company, for an undisclosed amount.

Cargill selling Chinese poultry business

Cargill revealed at the end of May that it would be divesting its Chinese poultry business to a private equity firm DCP Capital, leaving a sector it has been involved in for 12 years. Reuters reports that the transaction is expected to close this year, and that no information about the price of Cargill Protein China is available from either party.