AECI Announces the Signing of a Sale and Purchase Agreement for the sale of Animal Health
[Johannesburg, 09 July 2024] – AECI Limited, a leader in explosives in Africa, is pleased to announce the signing of a Sale and Purchase Agreement (SPA) for the sale of its Animal Health business, as a going concern, to Nutreco International B.V (South African subsidiary is Trouw Nutrition South Africa Proprietary Limited).
This strategic move aligns with our recently announced strategy, to streamline operations and focus on our core competencies, ensuring continuous growth and value creation for our stakeholders. Nutreco is recognised worldwide for its commitment to excellence and innovation, making it the right home for the Animal Health business and our people.
Holger Riemensperger, Group CEO of AECI, commented, "We are pleased to have found a partner that shares our vision and values in Nutreco. This transaction represents a significant milestone in our journey, and we are confident that the Animal Health business will thrive under Nutreco's leadership."
The transaction is subject to customary closing conditions, including regulatory approvals and the satisfaction of other agreed-upon terms. We anticipate the transaction to close in four to six months.
We remain focused on the successful execution of our strategy. This transaction affords us the opportunity to concentrate our efforts and resources to achieve our ambition to double profitability of the core business (Mining and Chemicals) by 2026 and attain a global market position in Mining of number 3 by 2030.
We extend our sincere thanks to all employees, customers, suppliers and partners for their dedication and support. We look forward to a seamless transition and continued collaboration with Nutreco in the future.
For more information, please contact:
Zanele Salman
VP: Investor Relations zanele.salman@aeciworld.com
groupcommunications@aeciworld.com
AECIInvestorRelations@aeciworld.com
About AECI
AECI is a diversified chemicals solutions company employing 7 168 people at more than 100 sites. We have a presence in 22 countries on six continents. Founded in 1896 to service South Africa’s burgeoning gold and diamond mining industries, the company was formally established in 1924. AECI was listed on the Johannesburg Stock Exchange in 1966. A mainstay of the economy in South Africa, over the years we have expanded our presence and evolved our product and service offering to a broad base of customers. Our products and services include, mine-to-mineral solutions, water treatment solutions, chemical raw materials and related services, asphalt and bitumen for road construction, food and beverage ingredients and commodities, vitamin and mineral animal feed premixes, crop protection products and plant nutrients as well as property leasing and provision of utilities. Our operating businesses are structured into four key operating business segments – AECI Mining, AECI Water, AECI Agri Health and AECI Chemicals.
Forward-Looking Statements
This media release contains forward-looking statements, including but not limited to statements regarding the anticipated closing of the transaction and future performance of AECI. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from those anticipated due to various factors.
AECI website: www.aeciworld.com
Nutreco website: www.nutreco.com