Olam Agri, an agribusiness group based in Singapore, has acquired Senegal’s Avisen SARL for €17 million (US$18.45 million), expanding its food and protein presence in West Africa.

Established in 2000 by two veterinarians, Avisen has grown to become the second largest poultry feed supplier in Senegal, with its facility in Rufisque producing over 100,000 metric tonnes of feed. Olam Agri is already one of the leading animal feed and day-old chick producers in Nigeria, and runs a wheat milling business in Senegal. 

According to Olam Agri, the price consideration was arrived at on a willing-buyer, willing-seller basis, taking into account the business performance and prospects of Avisen, and the capabilities and synergies between Olam Agri and Avisen.

The acquisition is funded through a combination of existing cash and debt facilities and is expected to be earnings accretive from 2024 onwards.

“Avisen has earned an excellent reputation in Senegal thanks to the high quality of its products, efficient distribution network and field teams providing technical advice to poultry growers,” says Sharad Gupta, president of the integrated feed and protein business at Olam Agri.

“Combining Olam Agri’s global commodity sourcing networks, strong manufacturing and formulation expertise with Avisen’s local market knowledge will enable us to further improve the quality and cost efficiency of feed in the Senegalese market.

“We expect continued strong growth in the poultry sector and the attendant demand for high-quality feeds, and will make necessary investments to grow our feed volumes. This is instrumental in enabling farming communities prosper and contribute to long-term food security.”

Avisen chief executive officer Papa Seck adds: “As a key player in the agribusiness industry, Olam Agri has the financial and technical capabilities to support and develop Avisen. It will bring industry best practices and a wealth of relevant experience drawn from its strong positions in other markets such as Nigeria. We are pleased Olam Agri shares our vision of growing a sustainable local animal feed industry to ensure food security for the country."