Olam Group’s subsidiary Olam Agri, in which VC2 holds a 64.5% stake, has announced the acquisition of Avisen, a prominent feed supplier in Senegal, for 17 million euros (S$24.8 million). This strategic move, disclosed on Monday (March 4), enhances Olam Agri’s presence in West Africa, particularly in the feed and protein sector. In Nigeria, Olam Agri is already engaged in producing animal feed and day-old chicks.
The acquisition, financed through a blend of existing cash reserves and debt facilities, is anticipated to contribute positively to earnings starting from 2024.
Established in 2000 by two veterinarians, Avisen operates a facility in Rufisque, boasting an annual production capacity exceeding 100,000 tonnes of feed.
Sharad Gupta, President of Olam Agri’s integrated feed and protein business, commented that the integration of Olam Agri’s extensive global commodity sourcing networks and robust manufacturing and formulation expertise with Avisen’s localized market insights will enable the company to enhance both the quality and cost-effectiveness of feed in the Senegalese market.
Furthermore, Gupta expressed optimism regarding the poultry sector’s sustained growth and the rising demand for high-quality feeds. Olam Agri is committed to making requisite investments to bolster its feed volumes accordingly.
