Nutreco has acquired two animal nutrition companies in Brazil. This expansion is in line with its strategy to expand into growth geographies. Fatec Indústria de Nutrição e Saúde Animal Ltda is a Brazilian supplier and producer of premixes and animal health products for broilers, layers, swine and dairy cows. BRNova Sistemas Nutriconais S.A. is a Brazilian supplier of premixes and feed specialties, mainly for poultry and swine.
With these two acquisitions, Nutreco increases its presence in Brazil, the third largest animal nutrition market in the world, growing annualized revenues from around € 110 million to approximately € 185 million. Brazil is a fast growing economy with annual growth of 4% to 5% in animal nutrition market. The acquisitions give Nutreco greater access in Brazil's southern, central and middle west states, and will broaden its animal species' portfolio to include layers, broilers and swine. They also strengthen Nutreco Brazil's product portfolio with the addition of premixes, animal health products and feed specialties including probiotics. The acquisitions will accelerate Nutreco's strategy to expand sales of globally branded nutritional solutions.
Knut Nesse, CEO Nutreco: "Fatec and BRNova are good strategic fits complimentary to our existing Brazilian business. These companies bring with them strong premix knowhow, strong market positions, expand our product and species portfolio in Brazil and have track records of selling innovative products to their customers. They also perfectly fit in our geographical expansion strategy and our 'Feeding the future' mission."
Fatec, established in 1966, has an experienced management team and strong customer relationships. Fatec's CEO, Cicero Shimano, and his senior management team will stay with the business. Fatec is headquartered in Arujá, São Paulo state, with a plant with an advanced laboratory and traceability system. It sells approximately 20,000 MT per annum of premixes, animal health products and feed specialties, including probiotics, across Brazil with a focus on medium-sized customers in the southern states. Fatec will provide Nutreco with a strong commercial platform in the southern area of Brazil, where poultry, swine and dairy cattle are primarily farmed, thus extending Nutreco's geographic and species coverage in Brazil. Fatec employs approximately 240 people and in 2014 revenues will be approximately € 50 million.
Cicero Shimano, CEO Fatec: "By combining the talents and expertise of our organizations, we will better be able to obtain leadership and excellence in the Brazilian animal nutrition market. Along with Nutreco's access to a global supply chain and an enhanced technology base we will be able to improve the delivery of innovative animal nutrition solutions to our customers. I also feel confident that this new phase of the company will be very positive for the development of our employees."
BRNova, established in 2012, also has an experienced management team that will stay with the business. It is an innovation-led company with strong nutritional solution application capabilities focused on larger customers. It is headquartered in Hortolandia near Campinas, São Paulo state, and sells approximately 15,000 MT per annum of premixes and feed specialties annually with the main focus on the southern, south eastern and middle west states. BRNova employs approximately 100 people and in 2014 revenues will be approximately € 25 million.
Fábio Escher, Glauber Machado and Douglas Morgonni, managers of BRNova: "BRNova is a Brazilian animal nutrition success story, achieving very significant growth in a short time. The transaction with Nutreco crowns this trajectory. BRNova is now part of an innovation-led global animal nutrition leader. From now on we will be part of a worldwide network of information, applied science and technological innovation. Nothing could be more consistent than that for a company that combines knowledge, innovation and quality in its DNA."
Fatec and BRNova will become part of Nutreco Brazil together with Nutreco Brazil's existing businesses in Brazil, Bellman (mineral supplements for ruminants) and FriRibe (premix and feed specialties products for ruminant, swine, poultry and aquaculture species). Following the acquisition of Fatec and BRNova the total pro forma annualized 2014 revenues of Nutreco Brazil would be approximately € 185 million.
Transaction details have not been disclosed.