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Danish Agro acquires Swedish agribusiness VärmLant AB

02-10-2017

Swedish Agro, the Swedish subsidiary of Danish Agro and Vestjyllands Andel, has signed a deal to acquire VärmLant AB, effective 15 March 2018

VärmLant is a family-owned company based in Säffle, has 19 employees and turned over DKK 178 million in 2016.
 
Henning Haahr, Danish Agro's Group CEO, is delighted to have reached agreement with VärmLant:
 
"VärmLant is a well-run agribusiness company that has enjoyed a close working relationship with Swedish farmers for many years. We believe this acquisition opens up considerable opportunities for strengthening that relationship and to widen the market for Swedish Agro's products and services. I see a lot of potential in the deal."
 
According to Swedish Agro's Managing Director, Björn Skogsberg, the acquisition is part of a predetermined strategy:
 
"Swedish Agro's strategy is to strengthen its geographical presence, enabling us to create value for even more Swedish farmers. This acquisition gives us three large branches with significant warehousing capacity, not to mention port facilities in a key agricultural area. From here, we will concentrate on strengthening our trading relationships in an area where we have not been represented before."
 
The Managing Director of VärmLant AB, Niclas Johansson, is also highly satisfied with the deal:
 
"What was important for us was to find a solution that was to the benefit of farming in the region, whilst protecting the jobs of our employees. The choice of Swedish Agro as buyer means that's exactly what we achieved."
 
Niclas Johanson will continue his work in VärmLant and will be named regional manager in Swedish Agro.
 
The sale is contingent on approval from the Swedish competition authorities.