Consumer preferences for natural food production and consumption of animal-based products are growing. Plant-based feed additives have particularly high growth potential as a component of healthy animal feed. To support feed customers in this growing space, Cargill has signed a binding agreement to acquire Delacon, the globally leading expert in plant-based phytogenic additives.
"After a successful five-year partnership, Cargill and Delacon will build upon their combined deep history and long-term commitment to scientifically driven, sustainable customer solutions focused on animal health, feed efficiency and performance," says Adriano Marcon, Cargill animal nutrition president. "We're excited to expand our animal nutrition offerings with science-proven additives."
"Combining Cargill's animal health technologies with Delacon's phytogenics provides the next frontier for animal productivity and sustainable, wholesome food production," says Mike Johnson, leader of Cargill's animal health technologies business. "Joining together with Delacon's leading talent and technology to deliver improved profitability and performance for our customers."
The acquisition combines Cargill's global network and deep expertise in animal nutrition technologies with Delacon's pioneering knowledge and market experience in phytogenic feed additives, a category that uses a broad range of herbs, plants and their extracts, such as essential oils, to improve livestock and aquaculture performance and promote animal health.
The term phytogenic feed additive was coined by Delacon's founders in the 1980s. Phytogenics are standardized, specific and science-based combinations of bioactive compounds found in plants.
Specific combinations of bioactives have proven efficacy and sustainability. They can have a positive effect on nutrient digestibility, performance, support resilience and at the same time contribute to the mitigation of greenhouse gas emissions from livestock. In addition, Delacon operates one of the largest industry-owned trial sites for phytogenic research.
"It is my responsibility to assure the frame for Delacon's future growth, developing our ability to thrive and taking phytogenic expertise to the next level," says Markus Dedl, Delacon's chief executive officer. "The acquisition will enlarge Delacon's scope for future innovations and make phytogenic feed additives more available globally. Together, Cargill and Delacon will accelerate the pace of innovation and drive strategic, long-term growth."
Upon closing, the acquisition grows the global presence and distribution of both organizations, adding nearly 150 talented people to Cargill's health technologies business in more than 25 countries around the world. The Delacon Hub in Engerwitzdorf, Austria, remains the strong center for phytogenic feed additives even after the acquisition.
With the addition of Delacon's plant-based phytogenic products, Cargill is further committed to research, innovation, sustainability and collaboration in the digestive and immune health space.
The acquisition is expected to close mid-2022, subject to customary closing conditions. The terms of the deal are not disclosed.
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