Royal De Heus Group enters Indonesian market through acquisition of Universal Agri Bisnisindo. The company signed a share purchase agreement Oct. 11 to acquire 100% of the shares in Universal Agri Bisnisindo (Universal), a private Indonesian animal feed company held by a consortium of several private shareholders.
The acquisition represents De Heus’ entry into Indonesia’s animal feed market and is in line with its strategy to further strengthen its position in the animal feed in Asia. The acquisition is expected to close during the fourth quarter of 2018.
With a population of 260 million people, Indonesia is the largest market for protein consumption in Southeast Asia, and the demand for animal proteins in Indonesia will continue to grow due to rising incomes, population growth and changes in dietary preferences. As a result, it is expected that the size of the animal feed market will further expand from 19 million to 22 million metric tons by 2022.
“With a total annual sales volume of 300,000 mt of poultry, fish and shrimp feed, Universal provides De Heus with an ideal platform to build and further expand our activities in Indonesia,” Royal De Heus chief executive officer Koen De Heus said. “De Heus is a family-owned company with a long-term vision for the animal feed industry. I am sure that our knowledge, experience and international presence will help us to strengthen and grow Universal’s feed activities in Indonesia by optimizing the technical performances of its customers and the independent Indonesian farmers.”
In 2009, De Heus has entered the Southeast Asian market through the acquisition of an animal feed company in Vietnam. Nine years later, De Heus Vietnam has become a top three player, with eight mills strategically spread throughout the country.
“The success of De Heus in Vietnam where, since last year, our regional Asian head office is located has boosted our confidence to develop our activities in the region. Besides Vietnam, we are now successfully operating two feed mills in Myanmar, constructing a feed mill in Cambodia and, through this acquisition, we can enter the promising Indonesian animal feed market,” Gabor Fluit, regional director De Heus Asia, said.
De Heus will appoint Kay De Vreese, who has more than 15 years of experience in key management positions in the industry in both Europe and Asia, as president director of Universal. He will be supported by Ton Hovers, an experienced professional in the Indonesian animal nutrition industry who will become a member of Universal’s board of directors and will focus on the further development and growth of the aquaculture business.
In addition to the Netherlands, De Heus has operations in more than 50 countries, including operating companies in Vietnam, Myanmar, Poland, Russia, Czech Republic, Spain, Portugal, Egypt, Ethiopia, South Africa, Brazil and Serbia. De Heus is also active in the Chinese market, where it has a strategic alliance with Wellhope Agri-Tech Co. Ltd. In addition, De Heus operates in many foreign markets through the export of concentrates and premixes, in particular to Eastern Europe, Africa and the Middle East.