SENEGAL – Olam Agri, a leading agribusiness in food, feed, and fibre, has completed the acquisition of Avisen SARL, Senegal’s second-largest poultry feed supplier for EUR17 million (US$24.77M), assuming 100.0% ownership of the company.
According to Olam, 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.
Additionally, this move broadens Olam Agri’s geographical footprint as well as strengthens its feed and protein business segment, particularly in Nigeria where it already has established operations producing animal feed and day-old chicks, 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 of feed.
Sharad Gupta, president of Olam Agri’s integrated feed and protein business, emphasized the synergistic potential of this acquisition.
“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.”
This acquisition is anticipated to be earnings accretive from 2024, funded through a mix of existing cash and debt facilities.
“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 to prosper and contribute to long-term food security”, said Sharad Gupta
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. “
He thanked Olam for sharing Avisen’s vision of growing a sustainable local animal feed industry to ensure food security for the country.
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