SINGAPORE
,
March 4, 2024
(press release)
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The acquisition of the country’s second largest poultry feed supplier aligns with Olam Agri’s strategy to strengthen its animal feed capabilities in West Africa Olam Agri, a leading agribusiness in food, feed, and fibre, has completed the acquisition of Avisen SARL (“Avisen”) for EUR 17.0 million, assuming 100.0% ownership of the company. The price consideration was arrived at on a willing-buyer, willing-seller basis, taking into account the business performance and prospects of Avisen, and the capabilities and synergies between Olam Agri and Avisen. This acquisition aligns with Olam Agri’s strategy to strengthen and expand its animal feed and protein capabilities and to invest in proven businesses having strong market positions. It extends the company’s feed and protein presence in West Africa, where it is one of the leading animal feed and day-old chick producers in Nigeria, while generating synergies with its wheat milling business in Senegal. Established in 2000 by two veterinarians, Avisen has grown to become one of Senegal’s major suppliers of feed, with its facility located in Rufisque producing over 100,000 metric tons (MT) of feed. “Avisen has earned an excellent reputation in Senegal thanks to the high quality of its products, efficient distribution network and field teams providing technical advice to poultry growers. Combining Olam Agri’s global commodity sourcing networks, strong manufacturing and formulation expertise with Avisen’s local market knowledge will enable us to further improve the quality and cost efficiency of feed in the Senegalese market. We expect continued strong growth in the poultry sector and the attendant demand for high-quality feeds, and will make necessary investments to grow our feed volumes. This is instrumental in enabling farming communities prosper and contribute to long-term food security”, said Sharad Gupta, President of the Integrated Feed & Protein business at Olam Agri. Papa Seck, CEO of Avisen said, “As a key player in the agribusiness industry, Olam Agri has the financial and technical capabilities to support and develop Avisen. It will bring industry best practices and a wealth of relevant experience drawn from its strong positions in other markets such as Nigeria. We are pleased Olam Agri shares our vision of growing a sustainable local animal feed industry to ensure food security for the country. " Olam Agri has had a strong presence in Senegal for almost a decade and is an established player in the wheat milling industry with its operations in Dakar supplying customers with a range of traditional and speciality flours. The acquisition is funded from a combination of existing cash and debt facilities and is expected to be earnings accretive from 2024 onwards.
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