Cargill purchases animal feed business

The acquisition from Southern States Cooperative will be integrated into existing facilities to enable expansion across the US.

The feed and nutrition arm of agricultural giant Cargill has acquired the animal feed business of Southern States Cooperative, a Virginia-based farm supply retailer and service co-operative.

Financial terms of the deal were not disclosed.

In a statement, Minneapolis-based Cargill said that the addition of Southern States’ feed business would strengthen its ability to service customers in the Southeast, Mid-Atlantic and Northeast regions of the US. Upon completion of the deal, the privately held firm plans to integrate the business with its existing feed capabilities, including providing access to relevant innovation platforms.

Established as a co-operative among 150 Virginia farmers in 1923, Southern States provides fertilizer, seed, livestock feed, pet food and animal health products to more than 1,200 retail outlets in 23 states. The retail, farm supply, energy and agronomy businesses of Southern States were not included in the Cargill deal, which did include seven feed mills and a portfolio of products, brands and customer and supplier relationships.

“Its important to note that while Southern States will no longer be making feed, we are committed as ever to provide feed to our members and customers,” Southern States president and chief executive Jeff Stroburg said. “We’re excited about the opportunities this partnership will bring to all stakeholders as we work together to grow the feed business in our marketplace.”

Cargill’s Feed and Nutrition unit offers compound feed, premixes and feed additives in addition to supply chain and risk management software. Operating more than 275 facilities across 40 countries, it offers products under a range of brands including Nutrena, Provimi and others.

The acquisition of Southern States comes amid a number of recent animal feed-related investments.

In April, CPPIB-affiliate Glencore Agriculture purchased Mercury Commodities, a UK-based animal feed product supplier. Lower-mid-market private equity firm Lariat Partners sold animal feed and nutritional product supplier WestFeeds to Ridley USA in June.

And later the same month, Tillridge Global Agribusiness Partners’ affiliate NGP Energy Capital contributed to the $95 million construction of a new production facility for Novita Nutrition, which offers digestible protein for dairy cattle feed.