Olam Agri, a leading agribusiness in food, feed, and fibre, has completed the acquisition of Avisen SARL (“Avisen”) for EUR 17.0 million, assuming 100 per cent ownership of the company. The price consideration was arrived at on a willing-buyer, willing-seller basis, taking into account the business performance and prospects of Avisen, and the capabilities and synergies between Olam Agri and Avisen.
This acquisition aligns with Olam Agri’s strategy to strengthen and expand its animal feed and protein capabilities and to invest in proven businesses having strong market positions. It extends the company’s feed and protein presence in West Africa, where it is one of the leading animal feed and day-old chick producers in Nigeria, while generating synergies with its wheat milling business in Senegal.
Established in 2000 by two veterinarians, Avisen has grown to become one of Senegal’s major suppliers of feed, with its facility located in Rufisque producing over 100,000 metric tons (MT) of feed.
“Avisen has earned an excellent reputation in Senegal thanks to the high quality of its products, efficient distribution network and field teams providing technical advice to poultry growers. Combining Olam Agri’s global commodity sourcing networks, strong manufacturing and formulation expertise with Avisen’s local market knowledge will enable us to further improve the quality and cost efficiency of feed in the Senegalese market. We expect continued strong growth in the poultry sector and the attendant demand for high-quality feeds, and will make necessary investments to grow our feed volumes. This is instrumental in enabling farming communities prosper and contribute to long-term food security”, said Sharad Gupta, President of the Integrated Feed & Protein business at Olam Agri.
Papa Seck, CEO of Avisen said, “As a key player in the agribusiness industry, Olam Agri has the financial and technical capabilities to support and develop Avisen. It will bring industry best practices and a wealth of relevant experience drawn from its strong positions in other markets such as Nigeria. We are pleased Olam Agri shares our vision of growing a sustainable local animal feed industry to ensure food security for the country. “
Olam Agri has had a strong presence in Senegal for almost a decade and is an established player in the wheat milling industry with its operations in Dakar supplying customers with a range of traditional and speciality flours.
The acquisition is funded from a combination of existing cash and debt facilities and is expected to be earnings accretive from 2024 onwards.
About Olam Agri and Olam Group
Olam Agri is a market leading, differentiated food, feed and fibre agri-business with a global origination footprint, processing capabilities and deep understanding of market needs built over 33 years. With a strong presence in high-growth emerging markets and products across grains & oilseeds, integrated feed & protein, rice, edible oils, specialty grains & seeds, cotton, wood products, rubber and commodity financial services, Olam Agri is at the heart of global food and agri-trade flows with 39.6 million MT in volume traded in 2023.
Focused on transforming food, feed and fibre for a more sustainable future, it aims at creating value for customers, enable farming communities to prosper sustainably and strive for a food-secure future. Olam Agri Holdings Limited, which holds the Olam Agri business, is a 64.6% owned subsidiary of Olam Group. 35.4% of Olam Agri Holdings is owned by SALIC International Investment Company, a wholly owned subsidiary of Olam Agri’s strategic partner The Saudi Agricultural and Livestock Company.
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Olam is a leading food and agri-business supplying food, ingredients, feed and fibre to 22,000 customers worldwide. Our value chain spans over 60 countries and includes farming, processing and distribution operations, as well as a global network of farmers.
Through our purpose to ‘Re-imagine Global Agriculture and Food Systems’, Olam Group aims to address the many challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities, our planet and all our stakeholders.
Headquartered and listed in Singapore, Olam Group currently ranks among the top 30 largest primary listed companies in terms of market capitalisation on SGX-ST.
Since June 2020, Olam Group has been included in the FTSE4Good Index Series, a global sustainable investment index series developed by FTSE Russell, following a rigorous assessment of Olam’s supply chain activities, impact on the environment and governance transparency.
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