GrainCorp buys Performance Feeds business for $35m

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GrainCorp buys Performance Feeds business for $35m

The Queensland-founded supplier of nutritional livestock liquid supplements to Australia’s feedlot and grazing sector, XF Australia, has agreed to a $35 million takeover offer from GrainCorp.

Founded in 1993 by Dr R Hollis Klett, XF Australia (XFA) operates two main brands, Performance Feeds and Nutrition Services Australia (NSA). Performance Feeds is both a manufacturer of liquid and loose lick supplements with three manufacturing sites in Queensland (Brandon, Dalby, and Kingsthorpe) and one manufacturing site in Victoria (Kyneton). NSA is a consulting business offering independent advice for feedlot performance and trace mineral premix production services.

XFA delivered earnings before interest tax depreciation and amortisation of $7.6 million last financial year.

The company's management teams are to remain in the business under GrainCorp’s new ownership following settlement.

GrainCorp Managing Director Robert Spurway said, "Performance Feeds and NSA are highly respected in the feed supplement sector who will enhance GrainCorp's capabilities in animal nutrition."

With drier conditions forecast, it is expected that demand for lick will increase as a feed supplement.