Minneapolis, Minnesota, U.S.A.-based Cargill has acquired Engerwitzdorf, Austria-headquartered Delacon, a maker of plant-based phytogenic additives.
The acquisition, expected to close in the coming months, “will bring deep feed additives expertise, global presence, and more wholesome food production” into Cargill’s portfolio, at a time when plant-based feed additives are growing, Cargill said in a press release.
"Combining Cargill's animal health technologies with Delacon's phytogenics provides the next frontier for animal productivity and sustainable, wholesome food production," Cargill Animal Health Technologies Manager Mike Johnson said. "Joining together with Delacon's leading talent and technology [will] deliver improved profitability and performance for our customers."
Delacon is a manufacturer of plant-derived solutions for the livestock and aquaculture industry and has 150 employees working in 25 countries. Its technology and products are exported to more than 80 countries, it said. It first entered a strategic partnership with Cargill in 2017, which included a minority equity investment from Cargill. Through the deal, Delacon will receive access to additional global markets and funding to expand its research and scope; for Cargill, the investment “expands its presence and capability in the additives space, with a focus on select markets outside the United States.”
"After a successful five-year partnership, Cargill and Delacon will build upon their combined deep history and long-term commitment to scientifically driven, sustainable customer solutions focused on animal health, feed efficiency, and performance," Cargill Animal Nutrition President Adriano Marcon said. "We're excited to expand our animal nutrition offerings with science-proven additives."
Delacon is a specialist in phytogenics, which are standardized, science-based combinations of bioactive compounds derived from plants. Specific combinations of bioactives “have proven efficacy and sustainability [and] … can have a positive effect on nutrient digestibility, performance, support resilience, and at the same time contribute to the mitigation of greenhouse gas emissions” according to Delacon CEO Markus Dedl.
"The acquisition will enlarge Delacon's scope for future innovations and make phytogenic feed additives more available globally. Together, Cargill and Delacon will accelerate the pace of innovation and drive strategic, long-term growth,” Dedl said. “Our agreement with Cargill represents an opportunity to accelerate growth and invest in Delacon’s future and the future of phytogenic feed additives, as our customers are looking for solutions delivered in a natural, efficient, and sustainable way – from feed to food. Phytogenics are one of the most-promising groups of feed additives, and are turning from a niche market into a mainstream need. We are entering a new era of phytogenic feed additives, and the next five years are decisive for the developments in this growing market.”
Photo courtesy of Delacon
