Nutreco now further expands in Spain

19-01-2008 | |

After recent takeovers in the US and Japan in the aquafeed sector Nutreco now has signed a letter of intent to buy the feed and meat assets of Copaga in Catalonia, Spain.

The assets of Copaga to be acquired comprise a feed factory, a poultry
processing facility and a pig integration business.

The feed factory has
a capacity of approximately 300,000 tons and will strengthen Nutreco’s market
position in the region.

25 million chicken
The poultry
processing facility has a total production of approximately 25 million chickens
per year. This facility has been operated by Nutreco since July 2000 under a
lease contract.

11,000 sows
The pig integration business of
Copaga has 11,000 sows producing approximately 200,000 pigs per year. Nutreco
will have cost-plus contracts with customers in place to mitigate sensitivity to
market reference prices.

The acquisition of these assets of Copaga
enables Nutreco in Spain to further optimise feed and meat capacity and reduce
production costs. It will add approximately EUR 50 million in revenues and will
be EPS enhancing.

The transaction is subject to due diligence and approval of
the members of the Copaga cooperative and of Spanish regulatory authorities. It
is expected to close in the first quarter of 2008.

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