Nutreco and Hi-Pro Feeds are pleased to announce an agreement whereby Nutreco will acquire Hi-Pro Feeds, an animal nutrition supplier with operations in Western Canada and Southwest USA. The acquisition is subject to regulatory approval both in Canada and the USA and is expected to close in the second half of 2017 at the latest.
Hi-Pro Feeds is a full-service animal nutrition supplier, supplying complete and specialty feeds, premixes, concentrates and commodity ingredients mainly in Western Canada and Southwest USA. It operates fifteen mills and is headquartered in Okotoks, Alberta. Birch Hill Equity Partners is the current majority owner. They own Hi-Pro Feeds together with the company’s employees, over 80% of whom have invested in the company.
Knut Nesse, CEO of Nutreco: “We consider Hi-Pro Feeds as a very exciting company with a good reputation and solid management. In Canada this acquisition will make us a truly nation-wide animal nutrition company with a good presence in all regions and livestock segments. In the US this deal creates a new base for Nutreco, particularly in the dairy and beef industry in the Southwest.”
Jacques Leclerc, Managing Director of Nutreco Canada: “Hi-Pro Feeds is renowned for its lean, agile and customer-centric operational model. Combined with Nutreco’s innovation strength and nutritional solutions consisting of a wide range of models, products and services, I am confident that we will create extra value for our combined customer base in the whole of Canada.”
Daren Kennett, founder of Hi-Pro Feeds: “In Nutreco we have found a good steward for our business and we are excited about the opportunities that this brings to our customers and employees. As a global company, Nutreco has the resources and network available to create additional value for our customers through an expanded offering of proprietary models, products and services.”
The current leadership team consisting of Daren Kennett, Mark Knief and Jeff Dykstra will continue to manage the Hi-Pro Feeds business in both Canada and the US. The strength of the combined Nutreco and Hi-Pro Feeds’ leadership team will allow current Hi-Pro Feeds CEO, Dean Prevost, to transition his responsibilities over time.
Lazard Middle Market and CIBC Capital Markets acted as advisors to Hi-Pro Feeds.