Cargill Inc. will acquire Dutch animal-nutrition business Provimi Group for EUR1.5 billion ($2.14 billion) in one of its largest-ever acquisitions, expanding its reach deeper into the global market for animal feed.

The world's largest agribusiness company is utilizing a balance sheet bolstered this year by record profits and the sale of its stake in fertilizer maker Mosaic Co. (MOS). The deal gets Cargill off to a fast start for the fiscal year after reporting last week it spent $3 billion on acquisitions and to expand existing businesses in the fiscal year ended May 31.

Cargill's acquisition strategy is closely watched since the privately held company is known for making deals when an economic downturn scares away others. It is in a strong position for acquisitions after paying down debt following the sale of its majority stake in Mosaic in May. Yet opportunities may be limited because of the ongoing boom in world agriculture even as other sectors falter in the face of broader economic concerns.

The Provimi deal announced Monday will give Cargill entry into new feed markets in Europe and South America and deepen its reach across the supply chain for animal feed, adding more specialty products. Provimi will add France, United Kingdom and Brazil, among other countries, to the reach of Cargill's animal-nutrient unit and expand product offerings for feed mixes and additives engineered to increase production.

"This acquisition would mark a significant step in Cargill's animal nutrition growth strategy," said Paul Conway, Cargill's vice chairman.

Rotterdam-based Provimi operates in 26 countries with about 7,000 employees. No layoffs are planned as a consequence of the takeover, and the brand name will be kept, Provimi executives said.

Provimi 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.

Provimi is being sold by private-equity firm Permira. Provimi is part of a larger group of businesses Permira 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. 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 private equity company that invests in Permira, said it expects to receive GBP116.9 million from the sale.

The sale of Provimi was run by J.P. Morgan Chase (JPM) and attracted several bidders. Credit Suisse Group (CS) advised Cargill on the deal.

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. Nutreco declined to comment on news of the takeover, saying only that it will move forward with its strategy of both organic growth and growth through acquisitions. Royal DSM declined to comment.

Provimi Chief Executive Ton van der Laan said in an interview he is confident that the takeover can be completed by the end of this year.

-By Marietta Cauchi and Mark Peters, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com

(Bart Koster and Scott Kilman contributed to this article.)