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Wednesday, December 17, 2014
ForFarmers to acquire Countrywide Farmers feed, forage business
ForFarmers B.V. has announced its intention to acquire the feed and forage business from Countrywide Farmers P.L.C.
Countrywide is a leading supplier of feed products and services to the rural community in the U.K. through its Country Stores and direct to farm. Upon completion, ForFarmers will acquire the compound feed, blends, co-products, straights (but excluding grain trading) and forage (fertilizer, grass and maize seed and silage additives) businesses from Countrywide. The transaction also includes a long-term agreement for the supply of feed and forage products Countrywide sells in its Country Stores.
The business to be acquired has a turnover of €158 million (US$195.8 million) and amounts to approximately 400,000 tonnes. The transaction is subject to clearance by the U.K. Competition Authorities. The price paid is based on an enterprise value of €19.3 million (US$23.9 million) on a cash-free, debt-free basis. ForFarmers is currently the main manufacturer to Countrywide of the compound feed.
“ForFarmers has had a longstanding and successful relationship with Countrywide since 2005,” said Iain Gardner, COO of ForFarmers U.K. “Countrywide is an excellent example of a livestock feed company that has a tradition of combining the sale of general and specialist feed products with expert feed advice towards its clients. We especially welcome the skills and experiences in these areas of the nearly 60 employees that upon completion of the transaction will join ForFarmers in the U.K.
“Customer demands both in the U.K. and across Europe are changing as scale and complexity increases in the food and farming industry,” said Yoram Knoop, CEO of ForFarmers. “Farmers increasingly require customised solutions that add value to their business.”