Reudink, a subsidiary of ForFarmers Nederland and active in the organic sector through its organic feed solutions offerings, has acquired Van Gorp Biologische Voeders B.V.

According to ForFarmers, Reudink will take over Van Gorp Bio's employees, a specialized feed mill and its customer portfolio. Through this transaction, Reudink strengthens its leading position, especially in the organic animal feed market in the Netherlands.

Van Gorp Diervoeders, located in Waalwijk, Netherlands, is not part of the transaction.

Van Gorp Bio, like Reudink, focuses its feed solutions on organic livestock farming in all species, ForFarmers said. Van Gorp Bio produces organic feed in a feed mill in Schalkwijk both for its own clients and for other feed manufacturers.

In 2017, Van Gorp Bio sold 67,000 metric tons of feed. Turnover for 2017 amounted to approximately 31 million euros. Van Gorp Bio has 12 employees, including current managing director Arno van Gorp, who will remain involved for the time being to facilitate a smooth integration.

"There is an increasing demand for organic food and, therefore, also for organic animal feed. We want to further expand our position in this market. Acquiring Van Gorp Bio seamlessly fits this ambition," Reudink managing director Wilfred Jonkman said.

Arno van Gorp added, "We are convinced that merging with Reudink and, therefore, with ForFarmers offers added value for both our organic customers and our employees. Reudink's ambition to continue to grow internationally in the organic market by offering both innovative concepts and advice to customers appeals to us and gives us the confidence that this part of our company will continue to improve."

ForFarmers said the price it paid for the share transaction is based on a multiple over earnings before interest, taxes, depreciation and amortization, in line with historically paid multiples. Payment took place largely on Oct. 2, upon transfer of the shares. After a maximum of three years, a final payment will be made related to predetermined objectives to be achieved. Effective immediately, the results of Van Gorp Bio will be consolidated into the results of ForFarmers Nederland. Over time, Van Gorp Bio will be fully integrated into Reudink.

ForFarmers is an internationally operating feed company that offers solutions for conventional and organic livestock farming.

With sales of approximately 9.6 million tons of feed annually, ForFarmers is a market leader in Europe, which production facilities in the Netherlands, Belgium, Germany and the U.K. In 2017, ForFarmers had 2,325 employees and revenues of more than 2.2 billion euros.