cargill logo

Cargill to acquire Diamond V

Acquisition will accelerate growth and support healthier animals and more wholesome food production.

Responding to growing consumer preferences for natural and wholesome food production, Cargill announced Oct. 24 that it has signed a binding agreement to acquire Diamond V, a leading global provider of innovative natural solutions and technologies that improve animal health, animal performance and food safety.

This acquisition, which follows Cargill’s recent investment in Delacon, a global leader in natural, plant-based phytogenic additives, will give Cargill market-leading participation in the $20 billion global animal feed additives market, as well as world-class technical, regulatory and research and development capabilities and go-to-market strength in approximately 70 countries worldwide, the announcement said.

 “This acquisition strengthens Cargill’s and Diamond V’s shared vision to be a leader in creating new solutions for evolving consumer preferences for sustainable and wholesome food production,” said David MacLennan, Cargill chairman and chief executive officer. “Our combined businesses will accelerate growth, build industry-leading capabilities and natural solutions for animal health and food safety and help fulfill Cargill’s purpose to nourish the world in a safe, responsible and sustainable way.”

Cedar Rapids, Iowa-based Diamond V has a 75-year history and global reputation for developing unique, research-proven immune support technologies that work naturally with the biology of the animal to strengthen the immune system and promote a healthy digestive system to enhance animal health, animal performance and food safety.

Cargill said the purchase will encompass all of Diamond V’s business, including the human health business, Embria Health Sciences, and its branded product EpiCor. Diamond V’s headquarters will remain in Cedar Rapids, and the Diamond V brand will be the platform for future investments in natural solutions for animal food production.

“I am excited about what Diamond V and Cargill can accomplish together,” Diamond V president and CEO Jeff Cannon said. “This acquisition is an investment in the well-being of animals and, ultimately, in people.”

When the deal is closed, Diamond V will become part of Cargill’s premix and nutrition business.

“Diamond V is a tremendous company with deep scientific expertise and a highly respected global brand,” said Chuck Warta, president of Cargill’s premix and nutrition business. “Adding Diamond V’s leading talent and technology as well as its applications for sustainable protein production will enable us to deliver improved profitability and performance for our customers. Together, Cargill and Diamond V will accelerate the pace of innovation and drive strategic, long-term growth.”

Warta noted in an interview with Feedstuffs that customers are currently asking for new and innovative products, the kind that the combined organization will deliver. The technology exists to change the way today’s animals are fed, and Cargill and Diamond V share an enormous passion to meet that challenge, he said.

The goal, according to Warta, will be that of better serving customers who are increasingly turning to unique natural technologies to unlock the potential in feed to promote healthier animals, improve performance and help produce safer, more wholesome food.

When asked why Diamond V, Warta explained that when Cargill started down the path to expand its presence in this market sector, it recognized there are those companies that are out there with a commitment to science and those that are just out there. Diamond V, he said, is a company that is dedicated to science and to figuring out how the technology works. “Customers are ready for science-based evidence when it comes to these technologies and that is something that Cargill believes Diamond V, and Delacon on the plant side, can deliver.”

Cargill has deep nutritional expertise built over decades and delivered through its animal nutrition business. Diamond V will enhance these capabilities through its innovative focus on immune function and digestive health — critical components that will help customers improve the well-being of their animals and the safety of the food supply, said Warta, noting that through its commitment to innovation, technology and quality, Diamond V has earned a global reputation of trust and reliability in the animal nutrition industry and is recognized as a leader in food safety.

“Cargill and Diamond V will expand and create new world-class natural health technologies that will provide unique opportunities for customers and consumers alike,” Cannon said. “Adding Cargill’s vast resources and global reach to Diamond V’s industry-leading practitioners, scientists and technical experts will allow the new organization to provide world-class, innovative technologies and solutions to the global animal health and nutrition industry.”

Terms of the deal were not disclosed. The transaction is expected to close in early January 2018, subject to regulatory approval and customary closing conditions.

Cargill provides food, agricultural, financial and industrial products and services to the world. Cargill's animal nutrition business has more than 20,000 employees at more than 275 facilities in 40 countries. It offers a range of compound feed, premixes, feed additives, supply chain and risk management solutions, software tools, animal nutrition expertise and services to feed manufacturers, animal producers and feed retailers around the world to help put food on the plates of nearly 1 billion people around the world every day.

TAGS: Business
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish