Provimi buys Russian feedmills
October 01, 2002
by Emily Wilson
PARIS — Provimi has announced the acquisition of two complete feed businesses in Russia. Terms were not disclosed.
In the first transaction, Provimi purchased more than 75% of the shares of the Volosovsky Feed-Plant company, which is located near St. Petersburg. Provimi has also signed binding agreements to acquire more than 70% of the shares of the Hercules company, which has a feed plant in Klin, northwest of Moscow. The latter transaction is still subject to local regulatory clearance.
Volosovsky produces complete feed and will also be able to produce concentrates and premixes in the near future. The company currently employs 250 persons and produces around 90,000 tonnes of complete feeds on an annual basis for the St. Petersburg region.
Hercules, which employs 240 persons, produces around 55,000 tonnes of complete feed annually for the Moscow region. Additionally, the company has an oat flakes processing facility.
Both companies have been privatized, and each has a regional market share of around 15%, with the potential to increase turnover by an estimated 20% in the next two years, Provimi said. These acquisitions are in line with Provimi’s strategy to expand in Russia, which the company views as a market with strong growth potential.
Provimi is already active in the country through Provimi Russia with operations in Moscow, Samara and Azov. Complete feeds and concentrates are produced at both the latter locations.
Provimi sales in Central and Eastern Europe amounted to US$425.5 million in 2001, which represented 29% of the total group’s turnover. Most of Provimi’s markets in CEE, particularly in pet food, are expected to continue to grow in 2002.
The Provimi Group is active worldwide in all types of animal nutrition, manufacturing products and supplies and providing technical support for all species, including ruminants, poultry, swine, fish and pets. Excluding the Russian acquisitions, Provimi has 77 production centers in 28 countries and exports to more than 100.