ForFarmers announced February 3 that it has acquired 100 percent of the share capital of HST Feeds Ltd. The price paid is based on an enterprise value of €15 million (US$20.2 million) including cash.
HST Feeds Ltd. is based in Crewe, Cheshire, England, and sells approximately 127 metric tons of ruminant and poultry compound feed to customers throughout the northwest of England.
Iain Gardner, chief operating officer ForFarmers, said: "As we have seen in other parts of the country, the livestock sector in the northwest has consolidated over recent years and is now characterized by committed, professional producers. ForFarmers will continue to play its leading role in the consolidation of the animal feed sector, both in the U.K. and in continental Europe. We have to ensure that we remain competitive by improving efficiency and continually innovating in all areas of the business. We will utilize the innovation from both HST Feeds Ltd. and ForFarmers and use the best of both for the benefit of our customers in the future".
Tom Hiley, managing director of HST Feeds, said "It is clear to me that with the increasing demands of the retailers, coupled with the requirement to keep a tight control on costs, that we need a like-minded partner to meet the challenges ahead. Synergies will allow us to utilize the best of both businesses for the benefit of our current and future customers. By combining our local knowledge with the resources of ForFarmers, I believe we will be better placed to meet these challenges and support the business activities of tomorrow's dairy and poultry farmers in the northwest."
"It is clear that consolidation in the food and farming sector is accelerating and consistent with ForFarmers growth strategy. We will look for opportunities to develop our business for the long term by growing our presence and extending The Total Feed Business approach to an even wider customer base in our key markets," said Yoram Knoop, CEO of ForFarmers.
HST Feeds Ltd. was established in 1972. It will operate within BOCM PAULS, the U.K. company of ForFarmers.
