Viterra’s decision to sell the feed assets “was based on a strategic review process and does not include or affect its New Zealand feed assets,” the company said Wednesday.
Viterra “will continue to look for opportunities to grow its processing portfolio in industries where it can achieve scale and influence and this divestment will allow us to focus our capital on areas of greatest strategic impact,” CEO Mayo Schmidt said in the release.
“We are pleased that Hi-Pro intends to maintain continuity for the staff and customers of the livestock feed business going forward,” he added.
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“Long-term”
Hi-Pro was previously the operating name for Viterra’s U.S. feed business, which was run in tandem with the Canadian business, Unifeed, under the joint banner of Unifeed Hi-Pro.
Daren Kennett, who until now was vice-president for Viterra’s feed products group at Okotoks, will be Hi-Pro’s CEO.
In Viterra’s release Wednesday, Kennett said he expects to continue “to provide our customers with the same high level of services and quality products through the existing team of knowledgeable staff, and I am excited about the partnership with Birch Hill.”
Birch Hill, which currently has about $2 billion in capital under its management, describes itself as “Canada’s mid-market leader in creating long-term value” with “a record of business building over the long haul.”
The equity firm, on its website, says it has “a strong value discipline when acquiring new investments, and capitalize(s) companies conservatively to allow them to take the right risks on the path to growth.”
Viterra said it expects to close this deal during its second fiscal quarter, pending the usual conditions and any regulatory approvals needed.
Related stories:
Viterra buys more U.S. feed mills, April 28, 2008
Viterra buys Alta. feed mill, April 7, 2008
Viterra buys Oklahoma feed firm, Feb. 14, 2008
