Agroceres buys Multimix and increases dispute in animal nutrition sector
Valor Econômico 07/27/10
After the movement of consolidation of the meat industry in Brazil, the animal nutrition sector also follows the same path. The Agroceres group, which has most of its revenue in such segment, has just closed the acquisition of the São Paulo based Multimix. The deal takes place five months after the Brazilian Fri-Ribe and the Dutch Nutreco have entered into a joint venture and after the also Dutch Provimi had announced its expansion in Latin America. With strong presence in the market of supplements and nutrition products for pigs, Agroceres acquired Multimix, which produces vitamin and minerals for birds and also operates in bovines and swine. The value of the deal has not been disclosed, but Valor found out Agroceres disbursed nearly R$ 70 million (US$ 39 million) to take over the control of Multimix.Agroceres currently has five business units. The nutrition arm is responsible for 50% of the earnings of the group. As regards the segment of pigs, it is accountable for 25% of the earnings of the company. The remaining 25% are divided between the segments of seeds (Biomatrix), cultivated palm trees (Inaceres) and ant control (Atta-Kill). With the purchase of Multimix a new company, Agroceres Multimix, will be created and it will represent 70% of the earnings of the Agroceres group. The new company will have four productive units, three of Agroceres - two in Rio Claro (SP) and one in Patos de Minas (MG) - and the only plant of Multimix, located in Campinas (SP). With that, the group expects to stay among the three largest of the segment of supplements for nutrition in Brazil, together with Nutron and M. Cassab.
"Agroceres was already one of the market leaders in nutrition for pigs and the Multimix, was very strong in the market of birds. We have now created a company that is among the three largest in the sector and we estimate our participation, after the acquisition, at 7% of the market", says Fernando Pereira, President of the Agroceres group. In Brazil, the global market of feed - including supplements, vitamins, minerals and feed - generates nearly R$ 16 billion (US$ 8.9 billion) a year and it is very diluted. According to the National Union of the Animal Feed Industry (Sindirações) 58.4 million tons of feed were produced last year. The expectation for 2010 is that it gets close to 65 million tons.
...lines of credit to increase the activity in the industry, agribusiness, commerce, service renderers and productive cooperatives of São Paulo. Projects of innovation and technological development, projects for the reduction of environmental impacts and energy efficiency are also covered. The line of the Financing for the Investment of São Paulo - FIP (Financiamento ao Investimento Paulista) offers an interest rate of 0.65% a month, plus the correction in accordance with the IPC-FIPE (Consumer Price Index issued by the Economic Research Institute Foundation), with a term of payment of up to 60 months, including the period of grace. Further information may be obtained in the website br or through the phone (11) 3218-5747.
micro, small and medium-sized enterprises of São Paulo
agribusiness sector
investments in technological development