Dr Pierce Lyons, the Irish entrepreneur behing Alltech, passed away on 8 March. Born and raised in Dundalk, Co Louth, Dr Lyons moved to the United States in 1976. In 1980, he decided to “take control of his own destiny” and launched Alltech, and the company will remain privately held under the ownership of the family following his passing.

Keenan

In April of last year, Alltech agreed to acquire Keenan, the company behind the renowned green machine based in Borris, Co Carlow. What at first may have looked like an unlikely marriage, this coming together has been a win for both Alltech and Keenan. The question still existed, though: what did Alltech buy - a machinery manufacturer or a nutrition business?

Over the course of nearly four decades in business, Keenan earned a particularly strong reputation for manufacturing quality mixer wagons. In more recent years, it moved to interpret data for more than one million cows from close to 10,000 farms in 25 countries around the world, representing one of the world’s largest field databases on dairy feed efficiency.

Every year, 20,000 farmers contact the call centre in Borris to get instructions, change diets, all in real time. This is the opportunity

Dr Lyons told us last year that, firstly, Keenan is a machinery company with a great reputation.

“It’s not perfect, but it has a great presence in many countries in the world. It didn’t have the distribution infrastructure and this limited growth.”

He added that the Keenan team would be getting the benefits of Alltech’s experience from having a presence in more than 120 countries.

Secondly, he said it is connected to farmers: “Every year, 20,000 farmers contact the call centre in Borris to get instructions, change diets - all in real time. This is the opportunity.”

In terms of sales, according to Dr Lyons, Keenan was 95:5 in favour of machines, but in terms of future potential, it would be 50:50 in favour of communications.

Alltech sales

He told me last year that Alltech is a company with $2.3bn in sales with a clear strategy.

“We will continue to grow by acquisition, joint venture and organically,” he said, adding that Alltech will get closer to the farmer, enabling it to drive efficiencies on farm.

“We have an ambition to be a company with $5bn in sales in the future. This may take two years or it may take a few more, but this is where we are heading.”

The opportunity with Keenan came unexpectedly and Alltech had to move fast, according to Lyons. Ironically, he said that quite a number of the Alltech team not only had experience with Keenan machines, but had actually worked for Keenan in places as far away as China and the Middle East.

In April last year, Alltech agreed to acquire Keenan, the company behind the renowned green machine based in Borris, Co Carlow.

Dr Lyons said the first priority would be to “fill the production line in Borris”, and quoted Tayota and the car industry as a production model. But is it profitable to build diet feeders in a relatively high-cost economy, importing the steel and then exporting the machines?

He told us: “In an ideal world, the best place to build them is 20 yards from every dairy farmer. We just have to be as efficient as possible in Borris and we will do it.”

He said that he has known the Keenan family for “what seems like for ever”, as they only started in business two years before Alltech.

And what about what Keenan would bring to Alltech? “Keenan is a respected brand that brings ethical and profitable farming solutions," he said. "It has a strong reputation for manufacturing quality mixer wagons. It focuses on maximising feed efficiencies and it has four decades behind it in business.”

Alltech's 14th acquisition since 2011

So, what does Alltech bring to the table? Dr Lyons told us that Alltech’s goal was simply to improve health and performance of animals, plants and ultimately people through nutrition and scientific innovation. Alltech had been investing and looking for avenues to better deliver the company’s brand to farmers. Keenan was the 14th acquisition for Alltech globally since 2011. In 2016, it spent €400m in acquiring Ridley, one of the largest feed companies in North America. As Keenan is on-farm and talking directly with farmers, he believed it would provide an avenue to do this.

Global focus

When a local company is purchased by a global company, sometimes customers might have concerns that their experience will change. Dr Lyons told us that while there would be change, Keenan would continue to be headquartered in Borris.

“We will integrate and realign synergies and get back to full performance once again. Production lines will ramp back up to full speed. Customers will receive a renewed level of support and service,” he said.

Company profile

Alltech is the only privately held company among the top five animal health companies in the world. It was founded in 1980 by Dr Pearse Lyons. It focuses on improving the health and performance of animals and plants through nutrition. With nearly 100 manufacturing sites globally, it is the leading producer and processer of yeast and organic trace minerals and algae.

We don’t buy companies to sell them; we don’t buy companies to shut them down and let people go. We buy companies to grow them

“As to the future, you must look at our experience. We don’t buy companies to sell them; we don’t buy companies to shut them down and let people go. We buy companies to grow them.”

Alltech is the No 1 feed company across Canada, running 19 feed mills there. France, the UK, Scandinavian countries and the rest of northern Europe and of course Ireland will all be focus regions, Lyons told us.

He said they would focus on farms with large herds in these regions and they would investigate the possibility of innovations in feeding technology, including vertical (tub) mixers. He said he would challenge universities to improve what is already thought to be one of the best.

Read more

Dr Pearse Lyons has died aged 73.