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BASF sells feed premix sites to Nutreco

0 628 Nutrition

Chemical company BASF is selling its animal nutrition premix business in eight countries to the Dutch animal feed group Nutreco. The sales contract was signed on February 16, 2007, and is subject to approval by the responsible authorities. No financial details were disclosed.
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The concerned premix sites are in Europe (UK, Poland, and Italy), Asia (Indonesia, China), North America (USA, Mexico) and Central America (Guatemala). The sale affects 435 employees, who will transfer to Nutreco. The sale is an important step in the global restructuring of the Fine Chemicals division of BASF.

Nutreco considers especially the BASF business in the UK - 'Frank Wright' - as an important asset given its specific role as supplier to the pet food industry.

More flexibility
"The divestment of the animal nutrition premix business is part of our strategy to operate efficiently and flexibly in the food and feed markets and, thus, to position BASF Fine Chemicals as a sustainable feed ingredient supplier to the feed industry," said Dr. Wolfgang Büchele, head of the BASF Fine Chemicals division.

The consolidation of human and animal nutrition into one nutrition business in November 2006 was a first step in this direction. BASF is focusing on producing and marketing important vitamins, carotenoids, enzymes and organic acids.

Growth of core business
"This is an important step for Nutreco in a time where we have just mobilized all our resources for a full focus on the growth of our core businesses animal nutrition and fish feed for aquaculture," said Jürgen Steinemann, Nutreco's Chief Operating Officer.

"Reinforcing our strongholds in these growth markets with BASF's operations will help us to gain momentum for further expansion in the Americas and Asia.

"At the same time our leading position in Europe in premix and feed specialties is now strengthened with the contribution of the mixing business of BASF in important animal feed markets."

Remaining small businesses
This sale only covers the majority of BASF's animal nutrition premix business. The remaining part of the premix business at other sites is a lot smaller and mostly locally focused.

"We are working to find alternatives for these sites, too. Further divestments to potential local buyers are among the options being considered," Büchele added.

BASF is the world's leading chemical company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. The company has over 95,000 employees and posted sales of more than €42.7 billion in 2005.

Double sales of Trouw Nutrition
With this new step, Nutreco's premix and feed specialities business – Trouw Nutrition International – with total annual sales in 2006 of € 550 million will almost double its sales in premixes to € 400 million and will become the number two player in the global premix industry.

After integration and transformation the acquired BASF businesses will contribute € 10 million in operating profit to Nutreco in 2009 mainly due to cost synergies. It is expected that the acquired businesses will have a similar margin in two years' time as Nutreco's existing premix and feed specialities operations.

In the past 20 months Nutreco has acquired feed specialities businesses in Japan, Mexico, Russia, China, India and the Netherlands. In Brazil, Nutreco established a new feed specialities production facility.

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by Editor AllAboutFeed last update:6 Aug 2012

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