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Provimi acquired Pet Hungaria Kft

Provimi (listed on Euronext in Paris), one of the world leaders in the animal nutrition business, today announces that it acquired Pet Hungaria Kft, the number one private label pet food company in Hungary.

This acquisition further strengthens Provimi’s position as a leading pan-European private label pet food producer and is fully in line with its strategy to expand in higher margin categories and in the faster growing developing markets.

Pet Hungaria is the largest private label pet food producer in Hungary and sells to mostly large supermarket chains. The company with its head office near Budapest employs 350 people and has two production plants, one for wet pet food located in Sopronhorpacs and a second one for dry pet food located in Dombovar. In 2004, the company had a turnover of EUR 31 million.

This acquisition further strengthens the Group’s position in Central and Eastern Europe and with international retailers. Pet Hungaria exports to, amongst other countries, Austria, Romania and Croatia where Provimi now will have a stronger presence.

Pet Hungaria is Provimi’s third recent pet food acquisition in Central and Eastern Europe after the acquisition of Nama (Slovakia) in October 2004 and Ben (Poland) in February 2005. In July 2005, Provimi increased its production capacity in the region with the opening of a new wet pet food plant in the Czech Republic, in response to the increasing demand for private label pet food. These investments are fully in line with Provimi’s strategy to expand its presence in this segment and region.

Provimi's European Petfood business has now a network of 11 plants located in the Netherlands, Spain, Italy, Poland, Hungary, Slovakia and the Czech republic, with sales into nearly all European countries. Elsewhere the Group has petfood activities in the Americas and India.

Pet Hungaria will immediately have a positive contribution to earnings per share. The acquisition will be financed out of the Group’s existing financial facility.

The Provimi Group is active worldwide in all types of animal nutrition and is a leader in all markets where it is present. It employs over 8,000 people and has sales of over EUR 1.6 billion. Provimi has more than 100 production centres in some 30 countries and exports to over 100. Provimi manufactures products and supplies technical support for all species, including ruminants, poultry, swine, fish and pets.

27.10.2005

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