CDD: animal nutrition (Technology)

AMR assisted Provimi in making a major strategic move into the Mexican animal feed market

Client and project overview

Provimi, a major European animal nutrition business, wanted to build a presence in the Mexican market and had identified a potential acquisition target. AMR was asked to provide input on the achievability of the business plan in the light of numerous risk factors.

Key questions

  • What is the structure of the Mexican animal feed market and how is it changing (including industrialisation)?
  • How have external factors impacted the target’s performance?
  • What are the target’s sources of competitive advantage and how sustainable are there?

Highlights of AMR methodology

  • AMR developed a sophisticated understanding of the external factors influencing the target’s performance, including underlying demand, industrialisation, macro shocks, regional variation and competition
  • AMR combined this with a thorough review of the target’s internal data (including pricing) and customer base

Results

  • AMR’s work proved critical to allowing the deal to go ahead, based on the key finding that recent volatility in the target’s performance was caused by one-off, external factors and the underlying performance was highly stable
  • AMR analysis of customer preferences also identified clear value-creation potential
  • Based on clear recommendations from AMR, the business was able to perform significantly ahead of budget in year one

To learn more about how AMR supports B2B media companies looking to innovate into new products and services contact denzil.rankine@amrinternational.com 

“The sale of Provimi is the culmination of a four-year project to reshape the business and maximise shareholder value. AMR played a critical role in supporting Provimi as we realised this vision, and helped provide valuable support in the course of a smooth and well-run transaction.” (Provimi)