Archer Daniels Midland Company (ADM) announced that it has agreed to terms granting exclusivity in discussions to purchase Neovia, a global provider of value-added animal nutrition solutions, including pet food ingredients and pet food. Neovia has 72 production facilities and a presence in 25 countries, headquartered in Saint-Nolff, Britanny, France, and owns several pet food manufacturing entities.
The 100 percent cash deal has an approximate enterprise value of EUR1.535 billion, subject to customary adjustments. Under French law, the signing of an acquisition agreement is contingent upon informing and consulting with relevant employee representative bodies. Subject to that process and regulatory approvals, the acquisition is expected to close by the fourth quarter.
“The acquisition of global leader Neovia would represent a transformative step for our Animal Nutrition business, and a major strategic investment in France,” said ADM Chairman and CEO Juan Luciano, in a press release.
“The acquisition of Neovia would be a major step as we continue to execute the value creation strategy we first outlined in 2014,” Luciano said. “Neovia is a major global provider of animal nutrition solutions, with significant operations in Western Europe, South and Central America, and Southeast Asia. Combining Neovia’s global presence and product and innovation expertise with our own growing animal nutrition footprint and capabilities would create one of the world’s leading animal nutrition providers, capable of offering complete solutions for customers around the globe—and would be the ideal platform for future growth.”
