01 November 2017 | News
Cargill inks deal to acquire Brazilian feed producer Cargill said the acquisition does not affect the current operation plants of Cargill Animal Nutrition in Brazil.
Cargill has announced that it has reached an agreement to acquire Integral Animal Nutrition, a cattle feed producer in Brazil. The announcement comes just a few days after Cargill signed an agreement to acquire Diamond V, a Cedar Rapids, Iowa, U.S.-based company focused on improving animal health.
Cargill said its acquisition of Integral will help it further develop its Free Choice Mineral and premix capabilities to better serve customers across Brazil’s mid-west region. The transaction is expected to close in the next few months, depending on regulatDiamond V, ory approvals of the Administrative Council for Economic Defense.
“Our customers are at the forefront of everything we do, and I’m thrilled to partner with a company that has more than 31 years of experience and a strong reputation for quality products and services in Brazil,” said Scott Ainslie, vice-president and group director, Cargill Animal Nutrition. “We see this acquisition as an important step in our plan to grow the beef business in Brazil and strengthen our supply chain throughout the country.”
Under terms of the agreement, Cargill will acquire 100% of Integral’s assets, including a production plant located in Goianira, Goiás, Brazil, a portfolio of products ranging from Free Choice Minerals to premixes, around 100 employees and net revenues of 80 million reais ($25 million) per year.
“Integral is enthused about joining Cargill to further develop capabilities and grow the feed business in our market,” said Paulo Mendonca Del'Acqua, chief executive officer of Integral. “It is important to us that we continue to build upon our commitments to achieve high sustainable products and services quality for our customers.”
Once the transaction is complete, Cargill said it plans to integrate complementary capabilities, expand access to innovation platforms, align nutrition capabilities and incorporate a broad trading and risk management competency.
“As we expand into this market, we bring Cargill’s rich history in innovative animal feed products,” said Celso Mello, managing director, Cargill Premix and Nutrition. “Our extensive work combined with Integral will be a catalyst for developing new products and solutions that continue to meet the needs of our customers.”
Cargill said the acquisition does not affect the current operation plants of Cargill Animal Nutrition in Brazil.
Cargill’s animal nutrition business has more than 20,000 employees at more than 275 facilities in 40 countries.
Founded in 1986, Integral has sales presence in the states of Goiás, Tocantins, Pará, Minas Gerais, Mato Grosso, Bahia and Federal District. The company supplies a range of products and solutions from minerals to premixes for beef cattle production systems in pasture and feedlot.