Cargill Expands Natural Approach with Diamond V Acquisition
Global agricultural powerhouse Cargill, Inc. announced October 24, 2017, that it has purchased natural feed additive manufacturer Diamond V.
The move is part of an apparent Cargill strategy to expand into the natural food business. Cargill officials noted they are “responding to growing consumer preferences for natural and wholesome food production.”
Diamond V is noted as “a leading global provider of innovative natural solutions, supplying natural immune support products and technical consultation to improve animal health, animal performance and food safety worldwide.” Among the products currently offered by Diamond V is SmartCare, a non-antibiotic supplement for preweaned calves introduced in 2015. SmartCare utilizes fermentation metabolites to support calf immunity and gastro-intestinal health.
The Diamond V acquisition comes on the heels of several other recent Cargill purchases in the feed/feed additive marketplace. Cargill invested in the feed additive company Delacon in July; purchased the animal feed business of Southern States Cooperative in August; and expanded its feed milling operations in Thailand via a mill purchase there in September.
“This acquisition strengthens Cargill’s and Diamond V’s shared vision to address evolving consumer preferences toward sustainable and wholesome food production,” said David MacLennan, Cargill’s chairman and chief executive officer. “This partnership will accelerate our combined growth; maximize value for customers by building industry-leading capabilities that focus on natural solutions to support animal health and food safety; and help to fulfill Cargill’s purpose to nourish the world in a safe, responsible and sustainable way.”
The purchase will encompass all of Diamond V’s business, including its human-health division, Embria Health Sciences, which produces ingredients for dietary supplements. Diamond V’s headquarters will remain in Cedar Rapids, Iowa. All of its approximately 300 employees will be retained, and the Diamond V brand will remain intact, becoming the platform for future investments in natural solutions for safer animal food production.
Based in Minneapolis, Minn., 150-year-old Cargill has 155,000 employees in 70 countries. The company recently divested its U.S. pork business and cattle feedlots, but has expanded in the aquaculture marketplace.
The Diamond V transaction is expected to close in January 2018, subject to regulatory approval and customary closing conditions.
Tue, 11/07/2017 – 04:44
Source: Dairy Herd