Shur-Gain and Landmark sale finalized

Tor-Eddie Fossbakk The intended acquisition was first announced 22 May this year. As anticipated, part of the completion is the sale of the small Canadian fish feed activity, which has been sold to Cooke Aquaculture Inc. The purchase represent sales of approximately CAD 650 million and 2006 earnings before interest and taxes of approximately CAD 47 million, employs over 1,200 people and operates a world-class research and development facility and 18 feed manufacturing facilities across Canada and in New York State. The acquired business - through its well-known Shur-Gain brand in eastern Canada and Landmark brand in western Canada - is the leader in animal nutrition technology and offers a wide range of products such as complete feeds, premixes, feed specialty products, feed additives and pet food. The business has strong, long-term customer relationships, an ambitious and experienced management team and a sound financial track record. The revenues are approximately CAD 650 million (EUR 430 million) with a strong earnings margin. This major acquisition fits Nutreco's core business growth objectives. The animal nutrition business in North America is the largest in the world and it has been a long standing ambition of Nutreco to increase its presence in this important area. Nutreco's growth strategy in animal nutrition focuses on capturing strong positions in nine countries where Nutreco is already active: Brazil, Canada, China, Germany, India, Poland, Mexico, Russia and the United States. The business is Canada's leading animal nutrition supplier with an overall share of above 20%. Total production in 2006 was 1.7 million metric tons of feed (5.9 million metric tons on a compound feed equivalent basis). It owns and operates 18 dedicated feed manufacturing facilities. The company has approximately 1,200 employees in eight Canadian provinces and New York State. Juergen Steinemann, Nutreco's Chief Operating Officer, stated in May that he is "very pleased with this transaction as it allows us to establish a leading position in North America with good growth potential. This acquisition also provides a solid platform for further steps in this region. We welcome the people of Maple Leaf's animal nutrition business who will team with Nutreco to strengthen our global activities."