OLAM Group : VC2 0%’s 64.5 per cent-owned subsidiary Olam Agri has acquired Avisen, a major feed supplier in Senegal, for 17 million euros (S$24.8 million), the group said on Monday (Mar 4).

The move bolsters Olam Agri’s feed and protein presence in West Africa, where it produces animal feed and day-old chicks in Nigeria.

It expects the acquisition, which is funded from a combination of existing cash and debt facilities, to be earnings accretive from 2024.

Avisen was established in 2000 by two veterinarians. Its facility in Rufisque produces over 100,000 tonnes of feed.

Sharad Gupta, president of Olam Agri’s integrated feed and protein business, said: “Combining Olam Agri’s global commodity sourcing networks, strong manufacturing and formulation expertise with Avisen’s local market knowledge will enable (the company) to further improve the quality and cost efficiency of feed in the Senegalese market.”

Gupta added that Olam Agri expects continued strong growth in the poultry sector, along with demand for high-quality feeds.

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The company will make necessary investments to grow its feed volumes.

Avisen chief executive Papa Seck said Olam Agri will bring industry best practices and a wealth of relevant experience drawn from its strong position in other markets such as Nigeria.

Olam Group’s counter ended Friday flat at S$0.98.