France-based InVivo Animal Nutrition & Health announced that it is strengthening its position as market leader in Mexico with the acquisition of the Sanjor production plant in Yucatan, which it will use to target sustained growth in Central America and the Caribbean.
InVivo ranks among the world leaders in its sector, with revenues of $1.9 billion and a presence in 19 countries. The rapidly-expanding group continues to consolidate its international operations in the key growth zones of the sector.
In this regard, Mexico constitutes one of the main countries within which the company is strengthening its presence. Already the leader in the feed sector via its subsidiary maltaCleyton, which has 10 production plants and a national distribution network, InVivo NSA now plans to make the country its export hub for the group's five businesses in Latin America. The group is continuing to invest in Mexico to meet this objective: it opened a new pet food plant in March and acquired a premix company Vipresa in July. The Sanjor purchase is part of this strategy.
The acquisition by maltaCleyton of the production site, which has an annual capacity of 100,000 metric tons, will enable the group to strengthen its presence in the Yucatan peninsula and effectively supply a growing market, estimated at more than 1 million mt.
With its substantial storage capacity, this new plant will help the group optimize production costs and offer quality products to its stock breeder and distributor customers in the region.
Ideally located near the Port of Progreso, the Sanjor will receive significant investment for modernization, which will increase its production capacity and the quality of its products. It will be a key entry point for exports to Central America and the Caribbean. Finally, the aquaculture sector will benefit in particular, with the construction of a dedicated and state-of-the-art line.
Hubert de Roquefeuil, chief executive officer of InVivo Animal Nutrition & Health, commented, "This acquisition strengthens the company's presence in Mexico in a demanding market environment. More broadly, it enables Mexico to play the role of an export hub for special feeds, ingredients, additives, hygiene, dietetics and animal health products and solutions in Central America (Guatemala, Honduras, etc.), the Caribbean, as well as Columbia and Venezuela."
Meanwhile, InVivo Animal Nutrition & Health also announced that it has acquired the shares from minority shareholders of BernAqua, a worldwide market leader in the aquaculture hatchery feed market.
InVivo has progressively acquired the remaining shares of all its minority shareholders in BernAqua — buyout of the last 15% was finalized at the end of November. This buyout is aimed at consolidating its position in the hatchery feed market as well as facilitating the international development of BernAqua.
BernAqua has a production site based in Olen, Belgium, and realizes a large part of its global turnover through export activity, mainly to Europe, Asia and the Americas.
The buyout of these minority shareholders shares by InVivo Animal Nutrition and Health does not modify the company strategy or business relations. However, it should give an edge to BernAqua to accelerate its development in Europe, Asia and America, the announcement said.
The InVivo Animal Nutrition & Health Group operates in five main businesses: complete feeds, premixes, additives, analytical laboratories and animal health. It employs 5,600 people at 65 production sites in 19 countries. In 2012-13, InVivo reported revenues of $1.9 billion.