Nutreco buys two Brazilian feed firms for emerging market growth
AMSTERDAM Dec 1 (Reuters) - Dutch animal feed company Nutreco said on Monday it had bought two animal nutrition companies in Brazil, growing revenues from the country by almost 70 percent, as part of its strategy of expanding in fast-growing emerging markets.
Nutreco did not say how much it had paid for Fatec and BRNova, which make a range of premixes, feed specialities and animal health products for chicken, pigs and dairy cows.
The company's feed revenues from emerging markets such as Brazil and China lagged revenues from North America and Western Europe last year.
It said revenues in Brazil, the world's third-largest animal nutrition market, would rise to an estimated 185 million euros ($230.33 million) from 110 million euros as a result of the acquisitions. The animal nutrition market in the country is growing by 4 to 5 percent a year, it said.
"Fatec and BRNova are good strategic fits," said Knut Nesse, Nutreco's Chief Executive. "They also perfectly fit in our geographical expansion strategy."
(1 US dollar = 0.8032 euro) (Reporting by Thomas Escritt; Editing by Biju Dwarakanath)
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