The Provimi Group, a world leader in animal nutrition, has reached agreement to sell its pet food activities, Provimi Pet Food (PPF), to private equity firm Advent International for an enterprise value of €188 m.

Headquartered in Budapest, PPF is a European leader in pet food, with total sales of €236 million in 2010 and around 1000 employees. PPF serves customers in 27 countries from 8 production locations throughout Europe. PPF has a strong position as preferred pet food supplier for large retail food chains across Europe. Advent international is committed to supporting the existing growth ambitions for the business and exploring potential opportunities in new markets and new product development.

Provimi has managed its pet food business separately from its core animal nutrition business as the two have different profiles and dynamics. Following this sale, Provimi will be able to concentrate on the extensive growth opportunities available in the animal nutrition industry.

Provimi's CEO Ton van der Laan commented: "Provimi has a strategy to focus on its core animal nutrition business. Provimi Pet Food has strong growth opportunities and ambitions which could best be supported under a different ownership. We are pleased to have reached agreement with Advent international, which has clear plans to invest in and grow the business. PPF is well positioned to capitalise on positive market trends and strengthen its market leading position as a pet food business in Europe. The management team of PPF is fully supportive of the agreement reached and will remain with the business following the sale to Advent International."

"The sale of the pet food activities completes the process, started with the disposal of the fish feed activities, of focusing Provimi on its core animal nutrition business in swine, poultry and ruminants. In parallel, this core business has been substantially expanded through acquisitions in Colombia and Mexico and organic growth in Brazil, Russia and Asia."

The proceeds from the sale will be used to reduce the net debt position for Provimi Group. The transaction is expected to complete within the next two months following regulatory and works council processes.

Credit Suisse acted as financial adviser to Provimi on the transaction