ForFarmers Acquires HST Feeds05 February 2014
UK - ForFarmers has announced that it has acquired 100 per cent of the share capital of HST Feeds Ltd.
The price paid is based on an enterprise value of €15 million including cash. HST Feeds Ltd is based in Crewe in Cheshire and sells approximately 140,000 tonnes of ruminant and poultry compound feed to customers throughout the North West.
HST Feeds Ltd was established in 1972 and over that time has built a strong business based on operational excellence and adding value for their farmer customers through the development of innovative products and feeding programmes. HST Feeds Ltd will operate within BOCM PAULS, the UK Company of ForFarmers.
Iain Gardner, COO ForFarmers, said: “As we have seen in other parts of the country, the livestock sector in the North West has consolidated over recent years and is now characterised by committed, professional producers.
“ForFarmers will continue to play its leading role in the consolidation of the animal feed sector, both in the UK and in continental Europe. We have to ensure that we remain competitive by improving efficiency and continually innovating in all areas of the business. We will utilise the innovation from both HST Feeds Ltd and ForFarmers and use the best of both for the benefit of our customers in the future”.
Tom Hiley, Managing Director of HST Feeds commented: “It is clear to me that with the increasing demands of the retailers, coupled with the requirement to keep a tight control on costs that we need a like-minded partner to meet the challenges ahead. Synergies will allow us to utilise the best of both businesses for the benefit of our current and future customers.
“By combining our local knowledge with the resources of ForFarmers, I believe we will be better placed to meet these challenges and support the business activities of tomorrow’s dairy and poultry farmers in the North West”.
Yoram Knoop, CEO ForFarmers, added: “It is clear that consolidation in the food and farming sector is accelerating and consistent with ForFarmers growth strategy. We will look for opportunities to develop our business for the long term by growing our presence and extending 'The Total Feed Business' approach to an even wider customer base in our key markets.”
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