Olam Group’s agri business subsidiary Olam Agri has completed the full acquisition of feed supplier Avisen SARL for EUR17 million ($24.77 million).
The price consideration takes into account the business performance and prospects of Avisen as well as the capabilities and synergies between Olam Agri and Avisen.
The transaction is funded from a combination of existing cash and debt facilities and is expected to be earnings accretive from 2024 onwards.
The acquisition aligns with Olam Agri’s strategy to strengthen and expand its animal feed and protein capabilities and to invest in proven businesses having strong market positions.
It extends the company’s feed and protein presence in West Africa, where it is one of the leading animal feed and day-old chick producers in Nigeria, while generating synergies with its wheat milling business in Senegal.
Established in 2000 by two veterinarians, Avisen has grown to become one of Senegal’s major suppliers of feed, with its facility located in Rufisque producing over 100,000 metric tons of feed.
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“Combining Olam Agri’s global commodity sourcing networks, strong manufacturing and formulation expertise with Avisen’s local market knowledge will enable us to further improve the quality and cost efficiency of feed in the Senegalese market,” says Olam Agri president of the integrated feed & protein business Sharad Gupta.
Shares in Olam closed at an unchanged 98 cents on March 1.
