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    Beef

    ForFarmers acquires the feed and forage business from Countrywide

    chrislyddonBy chrislyddonDecember 9, 20143 Mins Read
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    ForFarmers B.V. has announced its intention to acquire the feed and forage business from Countrywide Farmers plc. Countrywide is a leading supplier of feed products and services to the rural community in the UK 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 (fertiliser, 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 and amounts to approximately 400,000 tonnes. The transaction is subject to clearance by the UK Competition Authorities. The price paid is based on an enterprise value of €19,3 million on a cash free debt free basis. ForFarmers is currently the main manufacturer to Countrywide of the compound feed.

    Iain Gardner, COO of ForFarmers UK: “ForFarmers has had a longstanding and successful relationship with Countrywide since 2005. 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 UK.

    We have set ourselves very ambitious targets to grow ForFarmers business in the UK. This year we have seen the benefits of HST Feeds and Wheyfeed joining the company. The acquisition of Countrywide’s feed and forage business will enable us to extend “The Total Feed Business” approach to an even wider customer base in our chosen markets.”

    Yoram Knoop, Chief Executive Officer ForFarmers: “Customer demands both in the UK and across Europe are changing as scale and complexity increases in the food and farming industry. Farmers increasingly require customised solutions that add value to their business. ForFarmers has reacted to this by developing “The Total Feed Business” approach by supplying livestock nutrition in whatever form our customers require it. On ruminant farms this includes grassland and silage management and the acquisition of Countrywide’s forage business will ensure that ForFarmers has a significant presence in this market. This acquisition is entirely consistent with the on-going development of our portfolio of products and services which forms one of the pillars of ForFarmers strategy. We expect that the acquisition will have a positive influence on earnings per share in 2016″

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