2022 Mergers and Acquisitions (M&A) in the Feed Industry

In 2022, the feed industry experienced a flurry of Mergers and Acquisitions (M&A) activities, reshaping the competitive landscape and fostering new opportunities for growth and innovation. In this article, we delve into the notable M&A deals that took place in the feed industry in 2022 and their implications for the sector. Disclaimer: These are just a few selected examples of the news we share with our members during 2022. If you also want to be the first to know and have unbiased information in record time Click here.

Introduction to 2022 Mergers and Acquisitions (M&A)

With the global population projected to reach 9.7 billion by 2050, there is an urgent need to increase food production to meet the rising demand. This increase in demand for animal protein has resulted in an increase in demand for feed products, which has spurred companies in the feed industry to expand their production capacity. The year 2022 witnessed several high-profile M&A transactions in the feed industry, as companies sought to strengthen their market positions, expand their geographic presence, and enhance their product portfolios. Among the significant M&A deals were:

1. Adisseo acquires Nor-Feed

Adisseo announced that it has signed an agreement to acquire Nor-Feed and its subsidiaries, a French group that designs, manufactures, and markets plant-based specialty ingredients and plant extracts for animal nutrition. This acquisition is part of the Adisseo Group’s global leadership strategy for specialty feed ingredients and a key step to developing specialty ingredients, and its ambition to make Nor-Feed a French leader in functional plant extracts for animal nutrition. _16/DEC/2022 _

2. France: Barentz acquires nutraceuticals distributor Natural

Barentz International announced that it has acquired Natural, a supplier of naturally sourced, herbal, and functional ingredient solutions for the nutraceuticals industry in France and Europe. Natural, based in Verrières-en-Anjou (Angers) and founded in 2010, employs a workforce of about 30 people. _16/DEC/2022 _

3. Novozymes and Chr. Hansen merger talks

Novozymes and Chr. Hansen have entered into an agreement to create a leading global biosolutions partner through a statutory merger of the two companies, the biggest ever merger between two Danish companies. The merger will see the dissolution of Chr. Hansen and is expected to complete in 4Q 2023, creating a new group with annual revenues of ~EUR 3.5bn. Novozymes will pay a substantial 49% premium to Chr. Hansen as the companies expect organic revenue growth of 6-8% until 2025. _12/DEC/2022 _

4. Eppen Biotech: China regulator approves acquisition by Starlake

The China Securities Regulatory Commission (CSRC) approved Xinghu Biotech’s (‘Starlake’) acquisition of 99.22% of Eppen Biotech’s equity through a combination of issuing new shares and 14.72% in cash, for a total sum of around US$ 807m. Starlake also intends to invest in Guangxin Group (Vanillin, Paracetamol intermediates and others), New Hope Group (agriculture, animal husbandry and food processing) and others. _29/NOV/2022 _

5. Pintaluba Group acquires Lek Veterina

Pintaluba Group has acquired Slovenian’s Lek Veterina, a supplier of premixes and supplements for the animal nutrition & health industries. With this acquisition, Pintaluba Group is expanding the activities in the Balkan and Central and Eastern Europe areas. Lek Veterina, recorded EUR 10m turnover in 2021. Pintaluba Group had a turnover of EUR 32Om in 2021. _11/NOV/2022 _

6. Belarus: AB Linas Agro gets approval to sell IOO Belfidagro

AB Linas Agro Group sells IOO Belfidagro, acquired as part of KG Group in July 2021. The preliminary agreement on the sale of the company was signed on 25 August 2022, subject to the approval of the Belarusian competition authority MART. All previously announced Russian and Belarusian divestments, totaling EUR 7.5m are expected to be completed by the end of 2022. AB Linas Agro Group owns 89.09% of the total share capital of IOOO Belfidagro, a producer and wholesaler of premixes with 58 employees. _07/NOV/2022 _

7. Poland: Darling Ingredients acquires poultry specialist Miropasz

Darling Ingredients Inc. announced it has entered into a definitive agreement to purchase Polish rendering company, Miropasz Group for approximately EUR 110m, subject to post-closing adjustments. Miropasz processes approximately 250’000 t/a through three poultry rendering plants in southeast Poland (Mirowice, Pszcaonow and Krasnystaw), and has approximately 225 employees. The transaction closure is subject to customary closing conditions and expected for 3Q 2023. _03/NOV/2022 _

8. Eppen Biotech: China regulator reviews acquisition by Starlake

The China Securities Regulatory Commission (CSRC) announced a review of Xinghu Biotech’s (‘Starlake’) acquisition of 99.22% of Eppen Biotech’s equity through a combination of issuing new shares and 14.72% in cash, for a total sum of around US$ 807m. Starlake will announce the review results of the CSRC’s M&A and Restructuring Committee. In the meantime, its stocks will be suspended from stock exchange trading. _03/NOV/2022 _

9. Denmark: Nutreco acquires Mosegården

Nutreco announces the acquisition of Mosegården, an independent livestock nutrition supplier in Denmark focusing on minerals and animal health products for pigs and cattle. _03/NOV/2022 _

10. PETRONAS Chemicals Group completes acquisition of Perstorp

Perstorp announced that it has been fully acquired by PETRONAS Chemicals Group Berhad (PCG), one of Malaysia’s leading integrated chemicals providers and part of PETRONAS Group. In May 2022, PCG signed a Securities Purchase Agreement with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm, to acquire the entire equity interest in Perstorp, a global specialty chemicals company based in Sweden. With the completion of the acquisition, Perstorp is now PCG’s wholly-owned subsidiary. _12/OCT/2022 _

Conclusion of 2022 M&A in the Feed Industry:

The implications and benefits of mergers and acquisitions (M&A) in the feed industry are significant. Enhanced market presence, diversified product portfolios, synergies, operational efficiencies, accelerated R&D and innovation, and improved customer service collectively contribute to the growth and competitiveness of companies in the sector. The M&A activities in the feed industry not only enable companies to meet the rising demand for animal protein and address evolving customer needs but also promote sustainable practices, foster industry collaboration, and drive the development of innovative feed solutions for a more efficient and sustainable global food supply chain.

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