The contract of sale was signed on March 28, and all shares of BOCM PAULS will be transferred to ForFarmers. The acquisition price is based on a going concern value of €85 million after deducting a provision for deficits of the pension fund and a deferred payment of the net proceeds of property intended for project development. The acquisition will expand ForFarmers' assets to 8.8 million tons of feed, including 6.5 million tons of compound feed and 2.3 million tons of straights and by-products. The company will also increase to 2,500 employees.
“We liked what they were saying and we like the way they operate,” said Nick Major, BOCM PAULS sales and marketing director, of the acquisition. “We share the same sort of philosophy and BOCM is up for this acquisition. I think both companies felt that with all the challenges and opportunities facing the animal feed industry in Europe, we could do much better together as a large group."
As ForFarmers did not have any outlets or mills in the UK before the deal was announced, there will be no staff redundancies or mill closures in Britain. “We might make a few changes here and there over IT and so forth, but otherwise we will continue to operate as normal here,” said Major. “As far as our international business, which has a special focus on pre-starter and starter feeds for piglets, is concerned, we don’t expect many changes, either. While ForFarmers does operate in some of the same markets, we are accessing several new ones where they do not have any interests at the moment, which should help open up opportunities for the new group.”
The transaction must still be approved by a general meeting of shareholders of the ForFarmers Group. In addition, a European competition procedure will have to be completed. The works council will also be consulted for advice.