Neovia, with headquarters in Saint-Nolff, Britanny, France, has 72 production facilities and a presence in 25 countries. The 100% cash deal has an approximate enterprise value of €1.535 billion ($1.79 billion), subject to customary adjustments.
“The acquisition of global leader Neovia would represent a transformative step for our Animal Nutrition business, and a major strategic investment in France,” said Juan Luciano, chairman and chief executive officer of ADM. “At ADM, everything starts with the farmer, and we are eager to deepen our relationships with French farmers and French agriculture as we bring together the resources, technologies and expertise of two great companies. We look forward to working with them to leverage their global presence, integrated value chain and world-class innovation to reach new markets and new customers together.”
The acquisition would be a major step in its value creation strategy that was first outlined in 2014, Luciano said.
Neovia has significant operations in Western Europe, South and Central America and Southeast Asia, but limited presence in the United States, making it a good complement to ADM, the company said.
“Combining Neovia’s global presence and product and innovation expertise with our own growing Animal Nutrition footprint and capabilities would create one of the world’s leading animal nutrition providers, capable of offering complete solutions for customers around the globe — and would be the ideal platform for future growth,” Luciano said.
Founded in France in 1954, Neovia manufactures and sells a wide range of nutrition solutions for the feed industry, operating in business lines including premix and value-added services, pet care, additives and ingredients, aquaculture and complete feed.
The company, which is currently majority owned by leading French agricultural cooperative group InVivo, has about 8,200 employees. It has extensive innovation capabilities, with 11 R&D centers in six countries. It had global sales of €1.7 billion in 2017 and more than 75% of its sales come from outside Western Europe.
“This is an important addition, not only for our animal nutrition business, but for our entire integrated Nutrition platform,” said Vince Macciocchi, ADM’s senior vice-president and president, Nutrition. “In recent years, health and wellness trends in human nutrition — such as clean label, natural ingredients, and innovative solutions — are being echoed in animal nutrition. With Neovia, we will have global capabilities that span human and animal nutrition, expanding our reach and enhancing internal efficiencies. From colors and flavors to enzymes and bioactives, our new integrated nutrition platform will offer an unparalleled array of ingredients and solutions to meet customer needs.”
Over the last four years, ADM has moved closer to end customers by adding capabilities in specialty and value-added products and services.
In its Animal Nutrition business, ADM has added premix and aquaculture capabilities in Asia; built new, modern facilities in North America; and moved into pet treats in 2017.
Earlier this year, ADM combined its human and animal nutrition businesses into a single business unit that offers complete nutrition solutions.
