August 16, 2011
Cargill offers to acquire Provimi forUS$2.16 billion
Press Release
The Provimi Group has announced that a binding offer to acquire the company from the Permira funds has been received from Cargill, for an enterprise value of EUR1.5 billion (US$2.16 billion).
Provimi has agreed with Cargill to commence the necessary Works Council consultations and appropriate anti-trust processes, on an exclusive basis.
Previously, Provimi had also attracted other bidders in auction such as Dutch rival Nutreco, Dutch life and materials sciences company Royal DSM NV, and Chinese agriculture firm New Hope Group Co.
Provimi''s EBITDA for the first half of 2011 was EUR86 million (US$123.8 million), up 20.3%. Earlier this year, Provimi''s board concluded that the group was ready for the next stage of its growth and began a strategic review to examine the options for the future.
Provimi and Permira were advised by JP Morgan and Freshfields.
US-based Cargill, one of the largest private companies in the world, is an international producer of food, agricultural financial and industrial products and services.
For Cargill, the acquisition of Provimi is a move into the added premix and specialties segments, as well as bringing strong positions within the emerging markets of Latin America, Russia and Asia.