August 10, 2023 – Esro Food Group (Esro) today announced it has finalised an agreement to expand its animal by-products processing activities through the subscription for a 50% shareholding in a newly established Petfood ingredient processing operation, Esro Pet Food BV.
This joint venture will be based in The Netherlands, with the other 50% of the shares owned by Scales Corporation (Scales).
Scales is a diversified agribusiness group. It currently comprises three operating divisions: Global Proteins, Horticulture and Logistics. The company’s diverse spread of activities gives Scales broad to the agribusiness sector.
The joint venture will leverage Esro’s existing processing capabilities, while growing its product portfolio, and further strengthen the relationships with existing and new suppliers. Along with Scales’ global specialist knowledge of the Petfood industry, the joint venture will be able to provide Petfood customers with a truly global solution for their ingredient procurement.
The first plant of the joint venture will be based in Belgium, where an existing processing facility that was previously used by Esro for edible by-product processing, is being transformed to a dedicated pet food plant. Construction of the new plant is underway and we expect the site to be fully operational and certified in the last quarter of 2023. The joint venture is also considering options for a second site, but a final decision on this is unlikely prior to 2024.
Esro and Scales each appointed two directors to the board of the joint venture and have appointed Leon Coolen as the Managing Director. Leon Coolen has extensive experience in leading global food and pet food ingredients businesses.
Esro Food Group’s CEP Joris Rooijackers is delighted to have a strong partner like Scales, with a rich experience and strong reputation in the Petfood market. “Now that we can join forces, we are convinced that this division can make a strong contribution to our operating result in the very near future.”
Scales’ Managing Director Andy Borland says “We are very pleased to be partnering with Esro to expand our Global Proteins division into the European market. We are also very pleased to be expanding and start our relationship with Esro’s shareholders: the Fayman family and the Rooijackers family, and Rabo Investments, the investment franchise of Rabobank, all of whom have strong networks in Europe.”
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