Malaysian poultry integrator CAB Cakaran Corporation Bhd plans to acquire animal feed producer Cargill Feed Sdn Bhd (CFSB) for USD 49.2 million in cash.
The acquisition will help CAB tighten control over its poultry supply chain. It will internalize feed production for its more than 100 broiler and breeder farms across West Malaysia.
Acquisition details and funding strategy
CAB’s wholly owned unit, CAB Cakaran Sdn Bhd (CABC), signed a conditional share purchase agreement with Cargill Holdings (Malaysia) Sdn Bhd to acquire a 100% equity stake in CFSB.
The group will finance the acquisition using USD 4.9 million in internal funds and USD 44.3 million via bank borrowings. As of March 31, 2025, CAB reported USD 17.9 million in cash and bank balances. Its total borrowings stood at USD 71.9 million.
The transaction is expected to close by Q4 2025.
Cargill’s operations
CFSB produces feed for poultry and aquaculture species. It operates manufacturing facilities in Westports, Butterworth, Melaka, and Sabah, with annual capacity reaching 400,000 tons.
Additionally, CFSB owns a 51% of Desa Cargill Sdn Bhd, which also manufactures animal feed.
For the fiscal year ending May 31, 2025, CFSB earned USD 83.2 million in revenue and USD 4.8 million in profit before tax. Its profit margin improved to 21.05%, supported by lower ingredient costs and bad debt recovery.
Quality control
Despite recent softening in revenue, CAB described the deal as strategically valuable. The company also operates the Kyros Kebab fast food franchise and says securing a stable and cost-efficient feed supply is critical to supporting growth.
“By internalizing feed manufacturing, the CAB group aims to improve feed quality consistency, reduce reliance on external suppliers, and mitigate risks related to raw material price volatility,” the company noted in a statement filed with Bursa Malaysia.
Subscribe now to the poultry technical magazine
AUTHORS
Newcastle Disease: One Hundred Years On, Why Transmission Control Matters More Than Ever
Mustafa Seckin Sandikli
Egg Size Versatility in Nick Chick – Part I
H&N Technical Department
Interview with Khaled Abdel Nasser Awwad
Khaled Abdel Nasser Awwad
When the Supply Chain Breaks: Poultry Prices and the Economics of Maritime Disruption in the Middle East
Dima Chatila
Reovirus Infections in the Broiler Industry
Edgar O. Oviedo Rondón
Egg Condensation in Hatcheries: A Hidden Risk for Embryo Development, Hatchability and Chick Quality
Rasel Ahmed
From Chat to Farm Insight: Bridging the Social Data Gap in Indonesian Broiler Farming
Setiawan Guntarto
Labor Shortage in the Poultry Industry: Potential Solutions
Edgar O. Oviedo Rondón
A Comparison of Soybean Meal from Different Origins in Terms of Nutrient Composition, Amino Acid Profile, and Protein Quality
Güner GÖVENÇ
When Algorithms Start to Control Feed Composition
Henri E. Prasetyo DVM. M.Vsc
