Commodities trader Cargill said on Wednesday its animal nutrition business has agreed terms to acquire a 51 percent stake in Ekol Gida, which operates in premixes and feed additives markets in Turkey.
The deal, which is subject to regulatory approvals, is expected to close in summer 2015. No financial details have been disclosed.
“Customers will gain access to Cargill’s extended product portfolio and technical expertise for an enhanced experience,” said Mark Poeschl, vice president and group director of Cargill’s animal nutrition business. “The commercial focus will be on Turkey and selected export markets.”
Serhad Celik, General Manager of Ekol Gida, said: “We are proud for Ekol Gida to make this significant step together with Cargill. The deal will leverage our established customer network in premixes, feed additives and our profound market knowledge.”
Cargill said in a statement that the transaction was “aligned with Cargill’s animal nutrition business’ growth strategy”.
“In addition to retaining Ekol Gida’s products and services, and customer base, Cargill will strengthen its commitment to Turkey as a primary growth market by building technical applications centres for poultry and dairy,” the statement said.
The company also said that the deal will allow for global research & development competence to boost local market capabilities and enhance innovation.
After a transitional period, the business will operate under the global Provimi brand in the market.
Cargill provides food, agriculture, financial and industrial products and services to the world with its 152,000 employees in 67 countries. Cargill Turkey has more than 400 employees in six locations working in the four major sectors of food, finance, grain & oilseeds and industrial & bio-industrial products.