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Cargill enters salmon feed marketCargill enters salmon feed market

Tim Lundeen 1

August 21, 2015

3 Min Read
Cargill enters salmon feed market

CARGILL has entered into an agreement with Altor Fund III and Bain Capital Europe III to acquire EWOS, a global player in salmon nutrition, for 1.35 billion euros (approximately $1.5 billion).

The transaction — Cargill's largest since its acquisition of Provimi in 2011 — is subject to regulatory approvals and is expected to close before the end of the calendar year.

EWOS produces more than 1.2 million metric tons of salmon feed for the biggest salmon producers in the world. Bain Capital and Altor Fund acquired EWOS from Cermaq in 2013.

The announcement said the acquisition gives Cargill entry into the salmon market and will make Cargill's animal nutrition business a leading player in the growing salmon feed industry.

"This transaction, which is significant and the second aquaculture acquisition Cargill has announced in as many months, is a strategic investment in our long-term growth and evidence of our commitment to the growing aquaculture industry," Cargill president and chief executive officer David MacLennan said.

As part of the transaction, Cargill will acquire seven feed manufacturing facilities — three in Norway and one each in Chile, Canada, Scotland and Vietnam — as well as two state-of-the-art research and development (R&D) centers in Norway and Chile.

The acquisition adds to Cargill's existing aquaculture capabilities in Mexico, Central America, China, the U.S., Southeast Asia, India and Ecuador, to which EWOS is expected to contribute complementary expertise and leadership, the announcement said.

"EWOS is a winning company," said Sarena Lin, president of Cargill's Feed & Nutrition business. "Adding its industry-leading talent and capabilities as well as its thought leadership in sustainable business practices will be transformational for our aquaculture nutrition business. We are looking forward to welcoming 1,000 highly talented EWOS employees to the Cargill animal nutrition team and strengthening our R&D capabilities and accelerating the pace of innovation to drive strategic, long-term growth for Cargill's animal nutrition business."

With this investment, Cargill will continue to leverage its global R&D  capabilities, which include 15 R&D and Technology Application facilities around the world.

In early July, Cargill announced a $30 million joint venture with Naturisa to build a shrimp feed facility in Ecuador.

"With the need for protein expected to grow by 70% worldwide by 2050, farmed fish and shrimp offer one solution to meeting this demand, and Cargill intends to play a major role in this growing and important market," Lin said.

Cargill's animal nutrition business has more than 18,000 employees at more than 250 facilities in 37 countries offering a range of products and services to feed manufacturers, animal producers and feed retailers.

EWOS has produced fish feed since 1935 and operates in the world's four major salmon farming regions of Norway, Chile, Canada and Scotland, in addition to entering the feed market in Vietnam.

Volume:87 Issue:32

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