Cargill has reached an agreement to acquire Integral Animal Nutrition, a cattle feed producer in Brazil. The acquisition will help the company further develop its Free Choice Mineral and premix capabilities to better serve customers across the country's mid-west region. The transaction is expected to close in the next few months, depending on regulatory approvals of the Administrative Council for Economic Defense (CADE).
Cargill is committed to serving the beef industry with quality animal nutrition solutions and increasing production efficiencies. This acquisition will take the best of both companies' capabilities to better serve customers looking for greater access to important minerals and premixes.
"Our customers are at the forefront of everything we do and I'm thrilled to partner with a company that has more than 31 years of experience and a strong reputation for quality products and services in Brazil," said Scott Ainslie, vice president and group director, Cargill Animal Nutrition. "We see this acquisition as an important step in our plan to grow the beef business in Brazil and strengthen our supply chain throughout the country."
Under the agreement, Cargill will purchase 100 percent of Integral's assets, including a production plant located in Goianira, Goiás, Brazil, a portfolio of products ranging from Free Choice Minerals to premixes, around 100 employees and a net revenue of 80 million reais ($25 million US) per year.
"Integral is enthused about joining Cargill to further develop capabilities and grow the feed business in our market," said Paulo Mendonca Del'Acqua, CEO of Integral. "It is important to us that we continue to build upon our commitments to achieve high sustainable products and services quality for our customers."
Upon closing this transaction, Cargill will integrate complementary capabilities, expand access to innovation platforms, align nutrition capabilities and incorporate a broad trading and risk management competency.
"As we expand into this market, we bring Cargill's rich history in innovative animal feed products," said Celso Mello, managing director, Cargill Premix and Nutrition. "Our extensive work combined with Integral will be a catalyst for developing new products and solutions that continue to meet the needs of our customers". This acquisition does not affect the current operation plants of Cargill Animal Nutrition in Brazil.