Fermenta Biotech acquires 52% membership interest in US firm

Fermenta Biotech rose 2.1% to Rs 313.7 after the company said its wholly owned subsidiary, Fermenta Biotech USA, acquired 52% of the membership interest in US-based AGD Nutrition for an aggregate consideration of $1,260,500.

AGD Nutrition LLC, a Texas Limited Liability Company, had total turnover of $6.08 million from January to November 2020. Founded in 2002, AGD possesses expertise in animal nutrition, specifically, ingredients for feed applications. It is also a distinct player in the food and dietary supplements domain across North America. Moreover, AGD commands strong relationships with its clientele thus bringing in customer proximity along with a wide distribution network across the continent.

Fermenta Biotech said the main purpose of acquisition is to facilitate exports and enhance its footprint in North America.

Fermenta Biotech is a leading manufacturer and global supplier of Vitamin D3. It produces a range of variants crystalline, oil, resin in oil, cold water dispersible (CWD) and feed grade powder, that can be used in applications like injectables, soft gel capsules, premixes as well as food and beverage fortification.

On a consolidated basis, the company's net profit fell 55% to Rs 14.71 crore on a 15.6% rise in net sales to Rs 93.37 crore in Q2 September 2020 over Q2 September 2019.

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