UPDATE: US Cargill To Buy Permira's Provimi For EUR1.5 Billion
August 15 2011 - 11:11AM
Dow Jones News
Dutch animal nutrition business The Provimi Group Monday said it
has agreed a EUR1.5 billion sale to U.S. giant Cargill Inc.
Provimi is being sold by its private equity owner Permira, and
was part of a larger group bought in 2007 for around EUR580
million. Permira sold Provimi's Budapest-based pet food business to
Advent International for EUR188 million earlier this year.
Based in Rotterdam, Provimi makes ingredients and additives that
are used in feed for cows, chicken and pigs. It posted earnings
before interest, tax, depreciation and amortization, or Ebitda, of
EUR154.2 million on sales of EUR1.6 billion for the year ended Dec.
31, 2010. Ebitda for the first-half of 2011 was EUR86 million, up
20.3% from the same period last year.
On completion of the sale, Permira will have made 2.3 times the
cash it put into its original acquisition of the whole group in
2007. SVG Capital PLC (SV.LN), a listed private equity company that
invests in Permira, said it expects to receive GBP116.9 million
from the sale.
Cargill is an international producer of food, agricultural
financial and industrial products and services with a growing
animal nutrition business.
"Today's acquisition is a significant move for Cargill into the
higher value added segments in the animal nutrition market," said
Paul Conway, Vice Chairman of Cargill Inc.
"Provimi has world-class expertise, knowledge and strong
technical know-how, an area that we believe is key to the future of
the industry," he added.
The sale was run by JPMorgan Chase (JPM) and attracted several
trade bidders.
Local rival Nutreco NV (NUO.AE) and Dutch life and materials
sciences company Royal DSM NV (DSM.AE) were considering a joint bid
and China's New Hope Group Co. was also reported to be
interested.
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241;
marietta.cauchi@dowjones.com