Acquisition makes Nutreco top 3 feed producer
Nutreco has signed an agreement to acquire a 75 percent share in South American fish feed producer Gisis S.A.
Gisis is a subsidiary of the Expalsa group — a market leader in fish feed production and shrimp and tilapia farming in Ecuador with a strong market presence in Honduras and Peru.
The acquisition, which supports Nutreco’s growth strategy to expand its business into both geography and non-salmonid species places the company into the top three global shrimp feed suppliers.
It also strengthens Nutreco’s aquaculture feed business Skretting in Latin America, with production, sales and distribution facilities for shrimp and tilapia feed in Ecuador, Honduras and Peru and a joint venture with Regal Springs in tilapia. Expected revenues in 2012 are EUR 160 million, up from EUR 125 million in 2011.
The total consideration for the acquisition of 75 percent of the shares, including corresponding net debt, is approximately EUR 78 million. Closing of the transaction is subject to gaining regulatory approval from the Ecuadoran competition authority.
Gisis employs approximately 400 people and has two feed production plants in Guayaquil, Ecuador. It produced around 200,000 metric tons (MT) of shrimp and fish feed in 2011. The size of the shrimp feed market in Ecuador in 2011 is estimated at 350,000 MT. Ecuador ranks as No. 3 in worldwide shrimp feed production after China and Thailand. Over the past five years the market has grown by approximately 8 percent per year and double digit growth is expected in 2012. Fish feed production in Ecuador is around 60,000 MT.