Nutreco has successfully completed its acquisition of 75% of the shares in Gisis S.A., the aquafeed subsidiary of the Expalsa group. The transaction has received unconditional clearance by the Ecuadorian competition authority. This acquisition takes Nutreco into the global top three shrimp feed suppliers.
This acquisition fully supports Nutreco's growth strategy to expand its fish feed business in growth geographies and non-salmonid species whilst maintaining its global number one position in salmon feed:
Ecuador's shrimp feed market is Latin America's largest and the third largest in the world after China and Thailand, and growing at around 8% annually;
Associated aqua feed joint venture in Honduras with leading international tilapia producer Regal Springs provides potential for further growth in Latin America and Southeast Asia;
This acquisition strengthens Nutreco's aquaculture feed business Skretting in Latin America, with production, sales and distribution facilities for shrimp and tilapia feed in Ecuador, Honduras, and Peru and a joint venture with Regal Springs in Honduras. Revenues in 2012 amounted to EUR 157 million. The total consideration for the acquisition of 75% of the shares, including corresponding net debt, is approximately EUR 81 million.
The acquisition fits into Nutreco's strategy to capitalize on its leading fish feed positions, such as in salmon feed, and to expand into growth regions important for aquafeeds; notably for shrimp and non-salmonid fish species. The strategic target is to grow its fish feed business for non-salmonid species from 28% in 2010 to 45% of total fish feed volume by 2016. This acquisition will increase the non-salmonid share of total fish feed volume to close to 40% in 2013.