ForFarmers closes acquisition De Hoop Mengvoeders

2 February 2021 - 06:58

ForFarmers has closed the acquisition of De Hoop Mengvoeders (De Hoop), which had already been announced on 19 October last year. The required permits have been granted by the Dutch and  German competition authorities and other conditions precedent have also been met. The combination of ForFarmers and De Hoop creates a poultry feed organisation with a leading position on the broiler market in the Netherlands, Belgium and Germany.

ForFarmers acquires the shares in De Hoop’s compound feed business and its related transport activities as well as the mill with adjacent real estate. The acquisition price comprises a fixed amount of €23 million and a conditional payment of at maximum €17 million, subject to the realisation of agreed targets for the combined new organisation. The fixed amount is currently being paid in cash at closing, whilst the conditional payment will potentially take place in 2023.

The maximum takeover price takes into account the existing market circumstances and has been based on a multiple (on EBITDA) that matches the historical range that ForFarmers has paid for acquisitions.

The new combination shall be managed by Michiel Schreurs, Director Poultry ForFarmers Netherlands, together with the previous owner of De Hoop Mengvoeders, Gert-Jan Buunk, who will be responsible for the broiler sector.