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