Acquisition strengthens ForFarmers' position in poultry sector in Europe.

July 5, 2018

2 Min Read
ForFarmers acquires Maatman feed business

ForFarmers has acquired the compound feed activities of Maatman veevoeders en kunstmest VOF (Maatman), which is primarily active in the poultry sector but also in the ruminant sector in the Netherlands and Germany.

Through this transaction, ForFarmers acquired a customer portfolio and sales team with specific knowledge and experience, the announcement said. Maatman had outsourced its feed production to third parties, including ForFarmers.

Maatman was founded in 1929 in Wolvega, Netherlands, initially as a trading company in animal feed. The current owners, Martin and Edie Maatman, supply farmers with advice and feed with the aim to improve returns on the farm.

"ForFarmers also wants to help its customers to excel in results and quality. We want to continue with their customer-specific approach for both the poultry as the ruminant sector in the future," said Jan Potijk, general manager of ForFarmers Nederland.

Martin and Edie Maatman added, "The fact that ForFarmers’ customer approach and values are predominantly equal to ours was the prime reason to initiate discussions with ForFarmers about the continuation and future of our business. Moreover, an important plus is that we have been working well with ForFarmers for a long time. We are confident that the takeover by ForFarmers will create added-value to both our employees and our customers."

Maatman has 16 staff members, including the Maatmans. In 2017, Maatman sold 114,000 metric tons feed and fertilizer to poultry and ruminant farmers. Maatman's transport activities (15 bulk tankers) are included in the transaction, ForFarmers said.

ForFarmers is paying Maatman a price for the assets/liabilities transaction based on an enterprise value of €7 million, which amounts to an earnings before interest, taxes, depreciation and amortization multiple of approximately seven. Payment will largely take place at closing of the transaction and the remainder after meeting certain targets (earn-out).

The acquisition is subject to review by German competition authorities. Closing of the transaction is expected to take place within a few months. At that time, Maatman's results will be consolidated into the results of ForFarmers.

Maatman will become part of ForFarmers Nederland. Edie Maatman will temporarily remain to supervise a smooth integration of Maatman into ForFarmers and to ensure that the interests of customers and employees are well looked after in this transition phase, the announcement noted.

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