As a result of the acquisition, Denkavit will become the sole owner of the Volac milk replacer sales organization and the Volac Socoor business in Italy. Products for the UK and Ireland home markets will continue to be supplied and blended by Volac as part of the deal.
This buy-out was a strategic decision for both parties, with Denkavit committed to taking the acquired business "to the next level".
Erik Buys, CEO of Denkavit, said the deal underlines the company's ambition for global leadership in the calf milk replacer industry and gives it a "strong position" in the UK and Irish markets.
David Neville, CEO of Volac, explained the rationale behind the sale: “As our portfolio of products in Volac Animal Nutrition expands further into the feed additives area following the successful acquisition of Micron Bio-Systems in 2021, we want to build on the synergies this brings. We have made the decision to sell our milk replacer business to a leading player in that market who can give it the focus it deserves.”
Feed additive business
In March last year, Volac, already well established in young animal nutrition, feed fats and feed preservation products, launched a new feed additives division to help the global feed industry drive efficiency and meet the net-zero challenge.
The company said at the time that this new division would provide a platform for NPD focused on improving rumen microbial fermentation, efficient livestock production and reducing emissions, allowing for greater alignment with future industry challenges.
In addition to products targeting mycotoxin risk management, pre- and probiotic yeasts, the division will develop new products such as phytogenics to support animal health, resilience, and productivity in both the ruminant and monogastric sectors to improve profitability and sustainability.