Biomar buys Provimi's aquafeed activities

Move will substantially strengthen Biomar's market position and make it a significant player in Chile
November 7, 2007

Biomar buys Provimi's aquafeed activities

BioMar has signed agreements to acquire the fish feed activities of Provimi, one of the world leaders in the animal nutrition business.

The transaction, which is subject to approval of the antitrust authorities, concerns Provimi's aquafeed activities in Chile, Denmark and Spain, which represent about 90% of the Provimi Group’s fish feed business, or close to 10% of its annual consolidated sales. The divestment in Chile includes the sale of a 50% share in the joint venture with AquaChile, which is subject to first right of refusal.

The acquisition of Provimi’s fish feed activities represents a significant milestone in BioMar’s strategy “Going for Global Growth”. BioMar will substantially strengthen its position as the third largest fish feed producer in the markets in which it operates, and is expected as early as 2008 to realize the financial target of a turnover of DKK 5-6 billion in 2010.

BioMar's market share will double in Chile, making BioMar an important player in the Chilean market.

BioMar said the acquisition emphasizes its commitment to the long term development of the aquaculture industry, including emerging species in Europe.

There is a strong potential for realizing synergies between BioMar and Provimi’s fish feed activities within the key business processes of production, sales and administration: BioMar intends to enhance internal efficiencies, take advantage of increased scale in sourcing and use enlarged R&D resources to improve product performance.

The transaction is not expected to have effect on Biomar's financial results in 2007, but is expected to have positive effects during the coming years. Additional financial details will be made public at closing, which is expected to take place in the first half 2008.

Provimi said the transaction will allow it to better focus on its core animal nutrition and pet food businesses, investing in research and development while supporting a process of expansion into emerging markets.

Provimi's CEO Ton van der Laan commented: “We consider the sale of our fish feed activities the best response to the fast changing market environment of the fish feed industry. I am convinced that these fish feed activities will benefit from the expertise of the Biomar Group. Provimi will continue its successful strategy by concentrating its efforts and investments in growth opportunities in its core businesses, animal nutrition and pet food activities.”

Provimi employs almost 9,000 people and has annual sales of EUR 1.8 billion. It manufactures products and provides technical support for all species, including ruminants, poultry, swine, horses, fish and pets and will continue to sell its premixes to the aquafeed industry.