October 27, 2017
Cargill announced Oct. 27 that it has reached an agreement to acquire Integral Animal Nutrition, a cattle feed producer in Brazil. The acquisition will help Cargill further develop its free-choice mineral and premix capabilities to better serve customers across the country's midwestern region.
The transaction is expected to close in the next few months, depending on regulatory approvals of the Administrative Council for Economic Defense (CADE).
Cargill said it is committed to serving the beef industry with quality animal nutrition solutions and increasing production efficiencies. This acquisition will take the best of both companies' capabilities to better serve customers looking for greater access to important minerals and premixes, the announcement said.
"Our customers are at the forefront of everything we do, and I'm thrilled to partner with a company that has more than 31 years of experience and a strong reputation for quality products and services in Brazil," said Scott Ainslie, Cargill Animal Nutrition vice president and group director. "We see this acquisition as an important step in our plan to grow the beef business in Brazil and strengthen our supply chain throughout the country."
Under the agreement, Cargill will purchase 100% of Integral's assets, including a production plant located in Goianira, Goiás, Brazil, a portfolio of products ranging from free-choice minerals to premixes, around 100 employees and a net revenue of 80 million reals ($25 million) per year.
Integral was founded in 1986 with an objective to serve the demand of Brazil's midwestern market for high-quality products, sustainable solutions and personalized services. Today, with a sales presence in the states of Goiás, Tocantins, Pará, Minas Gerais, Mato Grosso, Bahia and Federal District, Integral supplies a range of products and solutions from minerals to premixes for pasture and feedlot beef cattle production systems.
"Integral is enthused about joining Cargill to further develop capabilities and grow the feed business in our market," Del'Acqua Integral chief executive officer Paulo Mendonca said. "It is important to us that we continue to build upon our commitments to achieve highly sustainable products and service quality for our customers."
Upon closing this transaction, Cargill will integrate complementary capabilities, expand access to innovation platforms, align nutrition capabilities and incorporate broad trading and risk management competency.
"As we expand into this market, we bring Cargill's rich history in innovative animal feed products," said Celso Mello, managing director of Cargill premix and nutrition. "Our extensive work, combined with Integral, will be a catalyst for developing new products and solutions that continue to meet the needs of our customers."
The announcement said this acquisition will not affect the current operation of Cargill Animal Nutrition plants in Brazil.
Cargill's animal nutrition business operates more than 275 facilities in 40 countries, providing a range of products and services to feed manufacturers, animal producers and feed retailers around the world. The business offers compound feed, premixes, feed additives, supply chain and risk management solutions, software tools and animal nutrition expertise that is unmatched in the industry.
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