Kemin to Acquire Spray Drying Technology and Assets from Leader in Pet Food Ingredient Business

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American Dehydrated Foods agrees to terms as Kemin continues expanding its pet food division

By combining ADF’s spray drying technology with Kemin’s PALASURANCE brand of palatants, we will be in a position to provide pet food manufacturers with the best palatant technology and performance available.

Kemin Industries, Inc. and American Dehydrated Foods, Inc. (ADF) today announced they have reached an agreement on acquisition terms allowing Kemin to purchase property, equipment and assets related to ADF’s spray drying technology for products used in premium and super-premium pet food.

The transaction is expected to close on June 30, 2011, and includes both ADF’s Verona South spray dried meat and digest facility and ADF’s research facility, each located in Verona, Missouri. In addition to continuing to manufacture and distribute some of ADF’s existing product lines produced at this facility, Kemin plans to install new processing equipment that will allow the manufacture of Kemin’s premium PALASURANCE® brand of palatant products.

“By combining ADF’s spray drying technology with Kemin’s PALASURANCE brand of palatants, we will be in a position to provide pet food manufacturers with the best palatant technology and performance available,” said Giuseppe Abrate, president of Kemin Nutrisurance, Kemin’s pet food division. “We have long been impressed by ADF and their operation and look forward to welcoming the ADF employees at the Verona South plant to the Kemin family.”

At the completion of the transaction, ADF will continue to be a global leader in the manufacture and sale of spray-dried egg and chicken products for the premium and super-premium pet-food industry. Verona South represents one of ADF’s eight operational locations. In addition, ADF will continue to own and operate drying facilities at the Verona North plant in Verona, Missouri and at its plant in Social Circle, Georgia.

“We are confident that the Verona South employees will flourish under Kemin’s global growth strategy,” said Kurt Hellweg, president and CEO, American Dehydrated Foods. “Following the sale, ADF will continue to produce its remaining lines of high quality protein and fat ingredients for our customers in the pet food industry.”

Kemin, already the worldwide market leader in antioxidants for pet food, is rapidly expanding its worldwide palatant manufacturing operations, and this acquisition is part of Kemin’s global expansion plan. With the addition of the Verona South facility, Kemin will increase its global capacity as a palatant manufacturer. Last year, Kemin opened a new, state-of-the-art palatant manufacturing facility in Veronella, Italy, and in 2008, Kemin acquired a controlling interest in Nord Palatabilizantes do Brasil.

In addition to the $30 million expansion of its corporate headquarters in Des Moines, Iowa, Kemin is currently pursuing expansion opportunities in Belgium, China, India, Russia and South Africa.

“This investment is one of many we are making in our commitment to the millions of pet owners who care about their pet’s quality of life,” said Chris Nelson, president and CEO of Kemin Industries. “Our expansion plans and related global investments are all part of our vision to improve the quality of life for people and animals throughout the world.”

Kemin – Inspired Molecular Solutions™
Founded in 1961, Kemin Industries is celebrating its 50th anniversary of providing “inspired molecular solutions” specifically developed to provide nutrition and health benefits for humans and animals. Kemin manufactures and distributes approximately 500 specialty ingredients worldwide to the feed and food industries as well as to the health, nutrition and beauty markets. Kemin ingredients positively impact more than 1.3 billion people a day.

A global, privately-held corporation headquartered in Des Moines, Iowa (USA), Kemin has experienced double-digit growth in the last several years. The company has more than 1,200 employees and operates in 60 countries with manufacturing facilities in Belgium, Brazil, China, India, Italy, Singapore, South Africa and the United States.

American Dehydrated Foods, Inc.
ADF is a worldwide leader in manufacturing, marketing and distributing highly digestible protein and metabolizable fat ingredients for the premium and super-premium pet food industry. Since inception, ADF has been a market leader in the pet food ingredients industry with unique and innovative product offerings, and currently offers a broad array of high quality pet food ingredients in six distinct spray-dried product lines.

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Erin Hockman

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