BioMar Group acquires Ecuador shrimp feed producer
Deal with Alimentsa creates solid foothold in Ecuador
As a part of the company’s expansion strategy, BioMar Group has taken a solid step into the shrimp feed market by acquiring 70 percent of the Ecuadorian shrimp feed producer Alimentsa. The acquisition will position BioMar among the leading shrimp feed producers in Latin America, creating synergies toward existing business.
Since 2016, BioMar has been servicing Latin American shrimp farmers from the factory in Costa Rica with focus on sustainability and feed efficiency. With the acquisition of Alimentsa, BioMar will create a solid foothold into Ecuador, which is one of the world’s leading shrimp-producing countries with a volume of more than 450,000 tons of shrimp. The country is recognized for shrimp products with emphasis on high quality and sustainability by end consumers and retailers. The acquisition is subject to approval by competition authorities in Ecuador.
“It is our ambition to become a major player within high-end shrimp feed. With the acquisition of Alimentsa, we can immediately deliver an attractive value proposition to the shrimp farmers in Latin America and we believe that we in the future - together with Alimentsa and the customers - can develop new product solutions based upon shared interest in innovation, cooperation, sustainability and performance. During our due diligence process we have been confirmed that the acquisition will enable us to build a strong relationship towards the Latin American shrimp farmers. Alimentsa is recognized for high-end feed and a professional technical service. That is very much in line with our focus in BioMar,” said Carlos Diaz, CEO of BioMar Group.
The acquisition represents an investment of US$119 million. BioMar Group estimates that the market will prove to be very attractive with growth rates of 8-12 percent. Shrimp production in Ecuador is characterized by optimal conditions that allow up to three production cycles per year. Furthermore, the farming densities in Ecuador are quite low compared with other markets, allowing much better and sustainable sanitary conditions. Alimentsa holds a market share around 12-15 percent.
“We foresee a solid business potential in Ecuador, but first and foremost we believe that the combination of a strong local company with recognized products and deep insights into the market together with a global company with the size and innovation muscle as we have in BioMar Group will enable us to meet the future requirements of the market as well as the end consumers. We are very confident in the local management and the organization”, Diaz said.