4 April 2023 - 08:03
ForFarmers has decided to sell ForFarmers Belgium to the leading agricultural and horticultural expert Arvesta. The current context, in which the agricultural sector is being put under pressure to produce even more sustainably, is leading to more consolidation and cooperation in the chain. Accordingly, ForFarmers and Arvesta entered into discussions about ForFarmers Belgium and closer cooperation in the chain.
By means of the acquisition of ForFarmers Belgium, Arvesta takes over both the approximately 80 employees who produce and sell approximately 420k tons of feed and the production site in Izegem in West Flanders. In addition, the mill and site in Ingelmunster are also included in the transaction. Arvesta already has production sites for professional feed in Aalter, Merksem, Kortrijk, Andenne and Hombourg. Due to the increased production coverage, customers can be supplied even better. The two companies will work more closely together especially in the broiler sector in Belgium, with ForFarmers continuing to produce feed in the Netherlands, so as to continue smooth deliveries to broiler farmers among other things. In addition, Arvesta will transfer its feed activities in the broiler sector in the Netherlands to ForFarmers and the parties will also focus on further improving the chain concepts in this collaboration. The sale of co-products, the activities in Belgium of the organic feed producer Reudink and the horse feed producer Pavo are not included in this transaction.
In line with strategic objectives, with perspective for stakeholders
This transaction is in line with ForFarmers' strategic focus, emphasising ecological ánd economic returns. With the expansion of activities in its home market, Arvesta can assist customers even better, both in the continuity of their businesses as well as the transition of the sector. This acquisition is entirely in line with Arvesta’s continued strategy and strengthens its position in the Belgian market in favour of the customer in order to further build the agriculture of tomorrow. ForFarmers shall receive a net amount of €25 million from Arvesta for the transaction, to be paid in cash at closing of the transaction. This is expected to take place in the second half of 2023. The transaction is subject to approval of the Belgian competition authority.