Brazil is the third largest feed market in the world with an annual growth rate of between 4% and 5%. Nutreco has expanded its presence in the market, and has gained increased access to the country’s southern, central, and middle-west states with the acquisition of two specialty feed companies. Fatec Industria de Nutricao e Saude Animal Ltda produces premixes and health products for broilers, layers, swine, and dairy cows, and BRNova Sistemas Nurtriconais SA supplies premixes and feed for swine and poultry. With the acquisition of these two companies, Nutreco will increased its annual revenue from €110 million to €185 million and will enable it to further fulfill its strategy to expand its sales of globally banded nutritional products. Nuteco itself is currently a target in a €3 billion takeover, as the privately held Dutch investment group, SHV Holdings, and Cargill and private equity group, Permira, have been each bidding for control, with SHV Holdings’ top bid currently standing at €44.50 per share. According to an agreement between Nutreco and SHV Holdings, any further counter-bids made by Cargill and Permira will need to be at least 8% higher than the SHV offer.
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