LONDON, Aug 15 – U.S. agriculture group Cargill is buying animal feeds producer Provimi from private equity firm Permira for 1.5 billion euros ($2.1 billion), the companies said on Monday.
The deal will see Permira earn about 2.3 times its initial equity investment, a person familiar with the situation said, allowing the firm to return cash to its investors before it kicks off a fundraising drive in September.
Permira acquired Netherlands-based Provimi in 2007 in a deal valuing the business at 1.5 billion euros.
Since then it has reshaped the business, disposing of non-core assets including its fish feed and pet foods divisions, and made strategic acquisitions, including Mexican firm NASSA.
The company posted earnings before interest, tax, depreciation and amortization (EBITDA) of 86 million euros in the first half, a rise of 20.3 percent.
“Cargill provided a clear and compelling case to become our owner and we believe that a combination of its animal nutrition business with Provimi will create a stronger business,” said Provimi chairman and CEO Ton van der Laan in the statement.
Provimi had attracted interest from rival corporate bidders, including a team of Nutreco and DSM and China’s New Hope Group.
($1 = 0.703 Euros)
(Editing by David Hulmes)