12 Dec 2014 — The Allflex Group, owned by funds advised by BC Partners, has signed an agreement to acquire SCR, the global leader in cow monitoring technologies.
The Allflex Group ("Allflex" or "the Group"), the worldwide leader in the field of animal identification and tracking tags, has signed an agreement to acquire 100% of the shares of SCR (Engineers) Ltd ("SCR" or the "Company"), a company developing, manufacturing and marketing advanced systems for monitoring cows, and innovative solutions for farm management. Total transaction value is circa $250 million. The acquisition is subject to certain regulatory approvals.
This highly strategic acquisition marks the beginning of a new era for Allflex bringing considerable experience and unprecedented technological advantages for the benefits of farmers around the world. SCR has been leading the development of monitoring technologies for dairy cows, sheep and goat for more than a decade. The Company’s significant growth historically has been driven by the increasing need for productivity gains for dairy farms and growing concern over animal well-being.
SCR and its technological edge will contribute to Allflex's technical expertise. For the past 50 years, Allflex has led the field of animal identification and tracking tags, using visual, electronic, and tissue sampling identification technology in more than 60 countries around the globe. The Group plans to support the international growth of SCR by leveraging its market presence and strong technical expertise in the farming ecosystem.
Jacques Martin, CEO of Allflex said:"The acquisition of SCR constitutes a significant milestone in our history. SCR is widely recognised as one of the most technologically advanced companies in the dairy farm management sector and represents a strong addition to the Group. Benefiting from SCR’s leading industrial knowledge and technology, Allflex will further develop new solutions for the benefit of dairy farmers around the world to address the significant changes which are affecting the industry today."
Jean-Baptiste Wautier, Managing Partner at BC Partners, said: "SCR is a truly unique company that shares several similarities with Allflex. The Company has demonstrated exceptional growth over the past few years driven by SCR’s strong technological expertise and the growing need for productivity gains for dairy farmers. The acquisition of SCR constitutes a major step for Allflex in a highly attractive adjacent sector and further positions the Group as the worldwide leader in animal traceability and farm management solutions."
Allflex has been advised on this transaction by Rothschild, Latham & Watkins and Ernst & Young.
SCR is a world leader in the development, manufacturing and marketing of advanced solutions that combine cow monitoring, milking and herd management systems. The company is the world's largest manufacturer of electronic milk meters and smart tags for monitoring cow fertility and health. SCR products support the operations of tens of thousands of dairy farmers throughout the world. Today there are over 13 million cows worldwide that are monitored or milked with the help of SCR technologies, and this has a substantive effect on the business success of thousands of dairy farms, providing smarter and more efficient tools for farm management. Established in 1976, SCR employs over 300 people. SCR has subsidiaries in the USA and in Europe and is present in China and in South America.
Allflex is the world leader in the field of animal identification and monitoring tags in the official (regulatory) and private field. Allflex manufactures advanced and easy-to-use applications of visual, electronic, and tissue sampling identification technology for the livestock breeding industry throughout the world, and in this way contributes to a safer global food supply. For the past 50 years Allflex has led the field, operating out of large production facilities around the world (in Europe, North America, South America, China, Australia and New Zealand). Its products are used in over 60 countries. Allflex employs over 1300 employees around the world.
About BC Partners
BC Partners is a leading private equity firm with advised funds of €12.6 billion. Established in 1986, BC Partners has played an active role in developing the European buy-out market for 28 years. BC Partners executives operate as an integrated team through the firm’s offices in Europe and North America, acquiring and developing businesses to create value in partnership with management. Since inception, BC Partners has made 86 investments in companies with a total enterprise value of €88 billion and is currently investing its ninth fund, which was raised in 2011 with total commitments of €6.7 billion. For more information visit: www.bcpartners.com.