CARGILL has sold the Zootech brand and French veterinary sales division of its Provimi business to Bimeda, a leading manufacturer and distributor of veterinary pharmaceuticals and animal health products.
The terms of the agreement were not disclosed. The transaction closed Dec. 20, 2013, with the transfer effective Jan. 1.
Commenting on the acquisition, Bimeda Europe chief executive officer Ian Simington said, "We are looking forward to growing the Zootech business, which gives us a great direct platform in France — one of Europe's largest veterinary markets. It enhances our range in the growing nutraceutical segment, and we will be able to complement Zootech's ruminant range with products from our own portfolio, particularly in the dairy sector, while enhancing the marketing commitment to the pet care range."
The acquisition of Zootech continues a busy period on the acquisition front for Bimeda following the recent purchases of Telsol and Vetpharm Animal Care, the company said.
Cargill noted that the sale of the sales division in France was consistent with its strategy of sharpening its focus on core animal nutrition solutions and premix activities — as part of Cargill Animal Nutrition — and concentrating on product lines where it can bring the most value to customers.
The two firms have agreed that Provimi will continue to manufacture ruminant bolus products for Bimeda — activities that are core to Cargill's animal nutrition business in France.
"By exiting this non-core business, we are able to better position our business in France to capitalize on growth opportunities in the animal nutrition industry," said Mark Poeschl, vice president and group director for Cargill's Provimi business. "In addition, Bimeda offers better opportunities for Zootech employees because it is better aligned with Bimeda's core business activities."
Bimeda, with its headquarters in Dublin, Ireland, develops, manufactures and distributes a wide range of veterinary products in more than 75 countries. To date, the company's main focus has been the development of products to treat and prevent disease and parasite infestation in livestock, horses and companion animals.