Nutreco ends divestment process in Spain/Portugal

11-06-2014 | |
Nutreco ends divestment process in Spain/Portugal

Nutreco has ended the process to explore a possible divestment of the compound feed and meat businesses in Spain and Portugal.

A comprehensive process determined that at the current time no agreement at a fair valuation and in the best interests of all stakeholders can be reached. Accordingly, these Spanish and Portuguese businesses will remain part of Nutreco.

Driven by its strategic focus on the growth segments Animal Nutrition and Fish Feed, Nutreco initiated a strategic review of its Spanish and Portuguese compound feed and meat businesses in 2013. After carefully reviewing strategic opportunities for these businesses, Nutreco announced an intended divestment in February 2014. A thorough process was undertaken, during which discussions took place with several interested parties. Nutreco continuously operated with the clear intention that any valuation for the businesses should reflect their market-leading positions, solid financial results and future potential. As these discussions developed, it became clear that no fair valuation could be obtained at the current time. In the best interests of Nutreco’s shareholders and in order to bring certainty to its employees, customers and other stakeholders, the divestment process has been halted, the company announced in a statement.

Both the Spanish and Portuguese businesses will remain part of Nutreco as a new and separate Business Unit Compound Feed & Meat Iberia. These businesses are well-managed, combine market leadership with operational excellence and are cash generative. The new Business Unit will be led by Javier Rodriguez Ceballos, who will report directly to the CEO of Nutreco.

The Spanish and Portuguese businesses comprise Sada which is Spain’s market leader in poultry meat products with a 26% market share, the Nanta compound feed business in Spain and Portugal with a 13% market share, and Inga Food which operates pig farming and trading activities in Spain. Sada will continue to improve its footprint in the retail and food service channels and will focus on fresh packed and value-added poultry products that offer the best growth opportunities.