Nutreco eyes Provimi, analysts say

31-03-2011 | |

Market analysts expect that animal feed firm Nutreco is to take over Netherlands based and Paris listed feed maker Provimi.

Last week rumours arose that feed manufacturer Provimi could be a possible prey for takeover by Nutreco. It was said that Povimi’s divestment of its pet food business made it more attractive for the Dutch conglomerate.
Provimi is owned by investment company Permira and it was said that it was looking for a buyer since it had Provimi in possession for almost four years now.
On top of that, the remaining activities of Provimi, such as premixes and specialities, would perfectly match with Nutreco’s portfolio. Nutreco wants to grow in these product categories and besides that Provimi is active in those countries that Nutreco has marked at growth-markets (Brazil, India, China).
One analyst said that Nutreco is offering a maximum of €700 million for Provimi, without endangering value creation. Another banker guesses on a takeover price of €1.3 billion, which he called ‘firm’, but taken into account, the strategic advantages it would be defendable.

Dick Ziggers Former editor All About Feed

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