Royal De Heus Group has signed a share purchase agreement to acquire 100 percent of the shares in Universal Agri Bisnisindo, a private Indonesian animal feed company held by a consortium of several private shareholders.
The acquisition represents De Heus’ entry in the Indonesian animal feed market and is in line with De Heus’ strategy to further strengthen its position in the animal feed in Asia. The companies expect to close the acquisition during the fourth quarter of 2018.
With a population of 260 million people, Indonesia is the largest protein consumption market in Southeast Asia and the demand for animal proteins in Indonesia will continue to grow due to rising incomes, population growth and changes in dietary preferences. As a result, it is expected that the size of the animal feed market will further expand from 19 million tons to 22 million tons by 2022.
“With a total annual sales volume of 300,000 tons of poultry, fish and shrimp feed, Universal provides De Heus with an ideal platform to build and further expand our activities in Indonesia,” said Koen De Heus, CEO of Royal De Heus. “De Heus is a family-owned company with a long-term vision for the animal feed industry. Four generations of our family have shown their leadership, commitment and involvement with our clients and partners. I am sure that our knowledge, experience and international presence will help us to strengthen and grow Universal’s feed activities in Indonesia by optimizing the technical performances of its customers and the independent Indonesian farmers.”
Royal De Heus in Asia
In 2009, De Heus entered the Southeast Asian market through the acquisition of an animal feed company in Vietnam. Nine years later, De Heus Vietnam has become a top 3 player, with eight factories strategically spread throughout the country.
“The success of De Heus in Vietnam – where since last year our regional Asian head office is located – has boosted our confidence to develop our activities in the region. Besides Vietnam, we are now successfully operating two feed mills in Myanmar, constructing a feed mill in Cambodia and, through this acquisition, we can enter the promising Indonesian animal feed market,” said Gabor Fluit, regional director, De Heus Asia.
De Heus will appoint Kay De Vreese, who has more than 15 years of experience in key management positions in the industry in Europe and Asia, as president director of Universal. He will be supported by Ton Hovers, an experienced professional in the Indonesian animal nutrition industry, who will become a member of Universal’s Board of Directors and who will focus on the further development and growth of the aqua business.