Dutch animal nutrition company De Heus is set to acquire South Korea’s CJ Feed & Care for approximately USD 852.27 million, as reported by Maeil Business Newspaper. CJ CheilJedang, the parent company, plans to propose the sale of its 100% stake during a board meeting on 1st October. This strategic divestment aligns with CJ CheilJedang’s ongoing efforts to streamline non-core businesses and strengthen its financial structure.
Established in 2019, CJ Feed & Care emerged from the biological resources division of CJ CheilJedang and operates feed, livestock, and fresh meat businesses across Southeast Asia, including Vietnam, the Philippines, and Indonesia. In the previous year, the company recorded USD 1.64 billion in sales and an operating profit of USD 53 million, successfully turning a prior operating deficit into a surplus. Despite this recovery, the company has faced challenges due to fluctuating raw material prices and variable livestock market demand, which contributed to performance volatility.
This transaction marks the third attempt to sell CJ Feed & Care, following prior negotiations in 2019 and 2020, including a cancelled deal with Nutreco due to pricing disagreements. For De Heus, the acquisition represents a strategic expansion into Asia, complementing its recent acquisition of Belgium’s Voeders Huys earlier this year. Founded in 1911 as a grain trading and milling company, De Heus has steadily grown into a major global player in animal feed and nutrition, maintaining family management over its operations.
The acquisition is expected to enhance De Heus’ presence in Southeast Asia, providing access to established feed and livestock networks while contributing positively to its global growth ambitions. For CJ CheilJedang, the sale will inject substantial cash flow and allow the company to focus on core strategic priorities, reducing risk from non-core operations.
