Alta Genetics has taken on a new investment partner, Koepon Holding BV of the Netherlands.
The $21 million deal became effective Oct. 1 when the private Dutch dairy company bought 57 percent of the shares of the Alberta-based genetics company. Common shares are worth $3.75 each.
The two companies have been involved in various business ventures for 15 years. Koepon, owned by Wynand Pon of the Netherlands, had held 12 percent of the Canadian company’s shares.
The deal gives Alta Genetics full ownership of AltaPon VOF, a European breeding and marketing firm that owns 400 Holstein bulls, said Doug Blair, chief executive officer and chair of the board of the Canadian company.
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New opportunities
The change widens the door to more genetic markets.
“We’ll be supplying semen to our customers everywhere no matter where the bull is,” he said.
Koepon has agreed to build additional facilities at AltaPon’s Dutch site for an estimated capital cost of $2 million. Koepon will lease them to AltaPon.
Koepon will have two directors on the Alta Genetics board. Other staff remains the same and the head office stays in Calgary.
“One of the reasons they invested was because of the people already in place,” said Blair.
In its most recent financial report, Alta Genetics posted a healthy picture for the first half of 1999, displaying four consecutive quarters of improved financial performance.
Revenues increased by seven percent over the previous year to $26.5 million. Gross profits increased both as a percentage of sales and dollars.
Alta Genetics produces and markets products and services based on livestock genetics technology. The company specializes in bull semen, livestock and reproductive technologies in 50 countries.
Well known for its dairy genetics, Alta Genetics is placing more emphasis on beef semen sales.
“The beef program has had a lot of growth in the last two years,” said Blair.
While there is semen available from more than 20 breeds, demand has been greatest in the Angus, Charolais and Simmental breeds, he said.
Last year the embryo production side of the business was sold to the Alta Genetics staff to form a new company, Alta Embryo.
Koepon Holding is a privately owned, integrated dairy production chain. Its operation ranges from milk production, breeding program development, dairy processing, the export of genetics and relocation of farmers.
The company owns farms in the Netherlands, Germany, Scotland and Ontario.
