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Cargill’s animal nutrition and premix business, Provimi, has announced an investment of around U.S. $20 million in South Africa. Cargill will, on completion of a deal signed on 30 November 2012, gain a majority shareholding and assume managerial control of NuTec Southern Africa, its existing joint venture with Astral Foods. As part of this investment the company plans to build a new premix and base mix facility at NuTec’s existing location in Pietermaritzburg to expand its animal nutrition capabilities in sub Saharan Africa.
Cargill RSA (Pty) Ltd will own 75% of the shares in NuTec (Pty) Ltd, a manufacturer of vitamin and mineral premix for the animal nutrition industry. Astral foods, an integrated Southern African poultry producer, will retain a 25% shareholding in the business and remains an important partner and customer to Cargill. NuTec will migrate its name and product portfolio to the Provimi brand.
“We are delighted to announce this investment, which will allow Provimi to better serve our customers in sub Saharan Africa,” said Gudo klein Gebbink, Provimi’s newly appointed general manager for the region. “We see great potential and opportunities to expand our business. The rapidly growing markets and increasing animal productivity in this strategic area are an excellent fit for Provimi’s market approach. Supported by our worldwide research and development capabilities, the combination of high quality nutritional products and top-class technical support will enable our customers to further optimize their results and effectively produce safe food.”
Gary Arnold, Astral’s business development director added: “The decision to sell a portion of Astral’s interest in this business was taken to allow Cargill to invest in the redevelopment of the NuTec facility, and simultaneously expand premix sales into African markets. As a result, Astral’s remaining 25% interest will be in a larger speciality premix business.”
This latest investment was welcomed by Johan Steyn, Managing Director of Cargill in South Africa: “This investment reinforces Cargill’s commitment to support farmers and to grow our businesses in sub Saharan Africa. South Africa is the perfect platform from which to increase our support of the agricultural sector in the region. Furthermore, it confirms Cargill's ongoing relationship with Astral Foods as an important business partner.”
Completion of the deal is conditional on South African Exchange Control approval and completion of other corporate formalities and is expected to take place within the next few weeks.
December 14, 2012 - Cargill
