NUTRECO announced that it has successfully completed its acquisition of 75% of the shares in Gisis S.A., the shrimp and fish feed subsidiary of Expalsa group in Ecuador.
The transaction has received unconditional clearance by Ecuador's competition authority. This acquisition moves Nutreco into the top-three global shrimp feed suppliers, the company said.
According to the announcement, the acquisition fully supports Nutreco's growth strategy to expand its fish feed business in growth geographies and non-salmonid species while maintaining its global position in salmon feed.
Nutreco noted that Ecuador's shrimp feed market is the largest in Latin America and the third largest in the world after China and Thailand and is growing at around 8% annually.
Nutreco added that the Gisis acquisition strengthens its Skretting aquaculture feed business in Latin America, with production, sales and distribution facilities for shrimp and tilapia feed in Ecuador, Honduras and Peru and a joint venture with Regal Springs in Honduras. Revenues in 2012 amounted to 157 million euros.
The total consideration for the acquisition of the Gisis shares, including corresponding net debt, was approximately 81 million euros.
The acquisition fits with Nutreco's strategy to capitalize on its leading fish feed positions, such as in salmon feed, and to expand into growth regions important for aquaculture feed, notably for shrimp and non-salmonid fish species.
Nutreco said its strategic plan is to grow its fish feed business for non-salmonid species from 28% in 2010 to 45% of total fish feed volume by 2016. The Gisis acquisition will increase the non-salmonid share of total fish feed volume to close to 40% in 2013, the announcement said.
Nutreco is a global leader in animal nutrition and fish feed. Nutreco employs approximately 10,000 people in 30 countries, with sales in 80 countries.