ForFarmers to sell ForFarmers Belgium to Arvesta, a renowned specialist in agriculture and horticulture. By purchasing ForFarmers Belgium, Arvesta will get control of the manufacturing facility in Izegem, West Flanders, and the approximately 80 people who make and sell about 420k tons of feed there. Also included in the deal are the mill and location in Ingelmunster. At Aalter, Merksem, Kortrijk, Andenne, and Hombourg, Arvesta already operates professional feed manufacturing facilities.
The two businesses will collaborate more closely, mainly in Belgium’s broiler industry, with ForFarmers continuing to manufacture feed in the Netherlands to ensure, among other things, efficient deliveries to broiler farmers. In addition, Arvesta will hand over to ForFarmers its broiler feed operations in the Netherlands. The parties will also concentrate on enhancing the chain concepts in this partnership. This transaction does not include the sale of byproducts and the operations in Belgium of the producers of organic feed Reudink and horse feed Pavo.
The deal fits ForFarmers’ strategic approach, emphasizing ecological and financial gains. Moreover, this purchase is entirely consistent with Arvesta’s current business plan. To further develop agriculture for the future, it improves its position in the Belgian market in the client’s interests. Arvesta will give ForFarmers a net sum of €25 million for the deal, to be paid in cash upon the deal’s closure. The deal is anticipated to go through in the second half of 2023.
This acquisition comes when the agricultural sector is pressured to produce even more sustainably, leading to more consolidation and cooperation in the chain. Furthermore, the transaction will strengthen Arvesta’s position in the Belgian market, especially in the broiler sector. On the other hand, ForFarmers will continue to produce feed in the Netherlands to ensure smooth deliveries to its customers while receiving a net amount of €25 million from Arvesta for the transaction.
Image provided by ForFarmers
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