Cargill Animal Nutrition business agrees to sell Swiss flour business to Groupe Minoteries SA
Cargill's animal nutrition business in Switzerland today announced that it is taking steps to strengthen its businesses in the country and position the organization for long-term growth. The company, doing business as PROVIMI KLIBA SA, has reached an agreement to sell its Penthalaz, Switzerland-based flour business to Groupe Minoteries SA, a leading flour milling company in Switzerland. The deal is expected to close in early August.
The sale includes the land, buildings, and machinery involved in the flour milling, grain origination and feed production facilities located at sites in Penthalaz and Orbe. Terms of the agreement were not made public. A new Company, Grands Moulins de Cossonay Sarl à Penthalaz will be established and 41 of Cargill's employees will be transferred to the new Company. Groupe Minoteries SA will purchase the shares of the new Company through the transaction.
"The sale of our flour business in Penthalaz and decision to invest in the Kaiseraugst and Lucens feed facilities is part of our overall strategy to position our animal nutrition business in Switzerland for growth," said Richard Sinclair, managing director for Cargill's animal nutrition businesses PROVIMI KLIBA SA and Protector SA in Switzerland. "This sale allows us to exit our non-core flour business and more effectively capitalize on growth opportunities within our animal nutrition business to bring more value to our customers and our employees."
After the sale is complete, Cargill intends to lease the feed production facilities at the Penthalaz plant from Groupe Minoteries SA. Feed production volumes as well as most positions from Penthalaz will be transitioned to the company's Kaiseraugst facility and to the Protector SA facility in Lucens, Switzerland, over the next 18 months. In addition, the company is investing up to $12 million to expand the capacity and efficiency of these facilities to accommodate the increased volume resulting from the transition.
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