Cargill to buy Provimi from Permira for € 1.5B

BERLIN: Cargill Inc., the largest closely held company in the US, agreed to buy Provimi from private- equity owner Permira Advisers LLP in a 1.5 billion-euro ($2.15- billion) transaction to expand in animalfeed additives. “A combination of Provimi and Cargill is strategically compelling and would create a powerful force in the global animal nutrition market,” Rotterdam-based Provimi said in a statement today .

“With complementary businesses , the two companies would be an excellent fit geographically and culturally.” The purchase underscores Cargill's aim to tap growing demand for food and health-supplements as a rising global population and improved living standards in developing countries boosts the need for meat. Provimi also drew interest from Dutch animal-feed maker Nutreco NV, Royal DSM NV and China's New Hope Group Co., people familiar with the situation said June 23. Permira, based in London, bought Provimi in 2007 from private-equity rivals CVC Capital Partners Ltd. and PAI Partners.

The Dutch company, which has about 1.62 billion euros in sales and 67 factories worldwide, competes with local animal- feed mills. At the same time, it also faces growing competition from meat producers and other suppliers of foodstuffs. Archer-Daniels-Midland Co. this year purchased Cattleman's Choice Loomix, a US maker of liquid animal-feed supplements. The price of the transaction wasn't disclosed.