Nutreco

Activity
Industrial consumables
Acquired
Sep 1994
Realised
Jun 1997
Sector
Industrials

Business
Nutreco was acquired from BP in September 1994 for €585 million.

Nutreco was an international group of companies with leading positions in the feed and nutrition markets for agriculture and aquaculture. Building on its core competencies in feed and production, Nutreco also engaged in complementary businesses, including breeding, production and processing of poultry and pigs, and salmon farming. The company had over 60 production and processing operations in over 15 countries.

Strategy
Cinven worked with the experienced management team to implement a streamlining and restructuring programme: the consolidation and integration of seven divisions into a two-group structure based on agriculture and aquaculture. This resulted in extensive efficiencies and synergies.

At the same time, management focused on a renewed ‘single company’ approach. Areas such as purchasing, research and development and information technology would bring scale and synergies if consolidated, and this was complemented by divestment of remaining non-core activities.

Outcome
Nutreco was floated on the Amsterdam Stock Exchange in 1997 and Cinven realised three times its investment.