MINNETONKA, Minn., Aug. 15 (UPI) -- Privately held U.S. food and agriculture industrial giant Cargill Inc. said Monday it would buy animal-nutrition firm The Provimi Group for $2.14 billion.
The Provimi Group is a Dutch company owned by private-equity firm Permira. Based in Rotterdam, The Netherlands, Provimi earned $222.7 million before interest, tax and depreciation in 2010. Sales also rose 24.2 percent in the first half of 2011 compared with the first half of 2010, The Wall Street Journal reported.
The deal has Permira set to make 2.3 times the cash it spent on Provima and other acquisitions that were part of a deal in 2007, the Journal said.
Provimi makes animal feed supplements and additives. The purchase, "is a significant move for Minnesota-based Cargill into the higher value-added segments in the animal-nutrition market," Cargill Vice Chairman Paul Conway said.
"Provimi has world-class expertise, knowledge and strong technical know-how, an area that we believe is key to the future of the industry," Conway said.