By Curt Thacker
The acquisition of LNB will complement Cargill's animal feed business, which produces concentrates and complete feed in Poland, Switzerland, Hungary, Italy, Spain, and Portugal in Europe as well as many other countries worldwide.
Cargill has announced plans to purchase LNB International Feed B.V., a privately held animal nutrition premix business. The acquisition has been approved by the Polish and Romanian anti-trust authorities and is expected to be completed by the end of February 2007.
The acquisition of LNB will complement Cargill's animal feed business, which produces concentrates and complete feed in Poland, Switzerland, Hungary, Italy, Spain, and Portugal in Europe as well as many other countries worldwide. It will extend Cargill's current supply network to new important markets while also adding premix to the portfolio.
LNB has approximately 270 employees in manufacturing sites in Poland, Romania and Suriname, and sales offices in the Netherlands and Russia. The company also has toll manufacturing arrangements in the Netherlands and Belgium and exports to approximately 50 countries in Asia, Africa, the Americas, the Caribbean and the Middle East.
The main business focus of LNB is the production of premix - a mineral and/or vitamin supplement that farmers and feed manufacturers use to make complete feeds for their customers or their own animals.
This will be the second largest acquisition of an animal nutrition company for Cargill, following its Agribrands acquisition in 2001. The LNB acquisition is a compelling strategic fit that will strengthen Cargill's leadership in the animal nutrition sector with distribution across key international markets, including areas with significant growth potential such as Romania, Russia, and Poland.
"Cargill has an overriding vision of improving the standards of living of people around the world," says David Webster, vice president of Cargill's animal nutrition business. "As incomes rise, people seek to raise their standard of living by improving their diets, moving away from a reliance on rice, grains and oilseeds to diets that include more animal proteins, and this is where Cargill plays a key role. LNB and Cargill provide an excellent complement with little overlap. The quality of LNB employees, and their expertise in the premix business and in new market expansion, are key reasons for our interest in the company."
Meanwhile, Cargill's global expertise in the grain and oilseed supply chain, production of animal feed and animal protein gives the company a unique insight into market developments and customer requirements.
"We are delighted with today's announcement, which will benefit employees of both companies, allowing the combined businesses to grow in an increasingly competitive market, covering a wider geographic area to supply a broad range of products and services to our customers", commented Loek de Ruijter, president