Archer Daniels Midland (AMD), one of the world’s largest agribusinesses, has agreed on exclusive terms to purchase French value added animal nutrition solution provider Neovia in a drive to expand ADM’s European footprint.

Neovia’s product portfolio included a wide range of nutrition solutions for the feed industry using a variety of feedstocks such as soyabean, sunflower and rapeseed for protein, said an ADM statement on 2 July.

The company operated business lines including premix and value added services, additives and ingredients, aquaculture and complete feed.

Saint-Nolff, France-headquartered Neovia had 72 production facilities and 11 R&D centres with a presence in 25 countries, including Western Europe, South and Central America and Southeast Asia, but a very limited US presence, which ADM said complemented its footprint.

ADM chair and CEO Juan Luciano said the deal – with an approximate value of US$1.535bn – would be a transformative step for ADM’s animal nutrition business and a strategic investment in France.

“We are eager to deepen our relationships with French farmers and French agriculture as we bring together the resources, technologies and expertise of two great companies,” Luciano said.

According to Vince Macciocchi, ADM senior vice president and president of the nutrition business, the addition of Neovia would help ADM extend its global capabilities in animal and human nutrition.

“In recent years, health and wellness trends in human nutrition – such as clean label, natural ingredients and innovative solutions – are being echoed in animal nutrition. From colours and flavours to enzymes and bioactives, our new integrated nutrition platform will offer an unparalleled array of ingredients and solutions,” said Macciocchi.

ADM said that the acquisition of Neovia was part of its four-year portfolio transformation programme in order add capabilities in speciality and value added products and services.