MINNEAPOLIS: The Provimi brand will retain its name following Monday's announcement that Cargill will acquire the global animal nutrition business from private equity firm Permira for $2.1 billion.
The pending acquisition will combine Provimi's broad nutrition expertise with Cargill's knowledge of compound feed, supply chain, and risk management, said Mike Fernandez, VP of corporate affairs at Cargill. Provimi was founded in 1927 in The Netherlands."Cargill and Provimi have complementary market positions and strengths," he added. "Bringing together the talents and expertise of both companies is expected to open up new innovation and market development opportunities."
No hires or layoffs are planned, and Cargill will not be seeking additional agency support at this time, added Fernandez. Cargill does not have an AOR because of its global footprint, said Fernandez. The company has worked with PR firms such as APCO, Weber Shandwick, Edelman and RF|Binder.
Cargill's communications team comprises more than 200 professionals worldwide, including recent growth in Asia and Latin America. Meanwhile, Provimi employs upwards of 7,000 people throughout Asia, Europe, Africa, and Latin America, with operations in 26 countries. Fernandez did not have a communications headcount for Provimi available by press time.
"We haven't gotten into any discussions around structure, and how communications would report," said Fernandez. "We have some units within Cargill that are more dotted line than hard lined. This was really about the discussion around the business assets, and what made sense from an overall business standpoint as we get into dealing with other functional areas, and how we support Provimi's growth going forward. That'll be the next step of the merger."
Monday morning's announcement was deployed via news release, as well as communicated on the intranet, Internet, and social media, said Fernandez.
"Employees within both companies started hearing the news Monday morning," he added. "And because both Cargill and Permira are privately held, owners were well aware of the transaction and negotiations ahead of the announcement."