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Danish Agro acquires Kalmar Lantmän

30-11-2015

On 30 November, the board and representatives of Kalmar Lantmän has decided to accept the acquisition offer from Danish Agro.

On 30 November, the board and representatives of the Swedish agribusiness Kalmar Lantmän with 44 out of 45 votes in favor decided to accept the acquisition offer from Danish Agro and Vestjyllands Andel. According to the regulations of Kalmar Lantmän, a second vote among the representatives on the transaction is needed. This will take place on 7 December where 67 % yes votes is required.

The transaction will formally go through Swedish Agro, a subsidiary to Danish Agro and Vestjyllands Andel, and will be implemented as of 1 January 2016.

- We are very satisfied with Kalmar Lantmäns decision to become a part of Danish Agro group. Kalmar Lantmän is an interesting company with long track record and strong culture, which we believe will fit well in our group. With our size and international experience, we can take part in developing Kalmar Lantmän further and increase competition on the Swedish market to the benefit of Swedish farmers. The acquisition will also strengthen the total group’s competitiveness and distribution power to the benefit our customers and owners, says Christian Junker and continues:

- Kalmar will become the future head quarter and focal point for all our agribusiness activities in Sweden meaning that all import of raw material, fertilizer, etc. along with export of grain will happen from there. We see a great potential in further developing Kalmar Lantmän and it is therefore the plan to expand activities and reach of the company in the future. The future growth will very much be based on Kalmar Lantmäns newly build, very modern feed factory on Kalmar harbor with a capacity of 265,000 ton. The potential of the factory is huge and we want to be able to offer quality feed from Kalmar to even more Swedish farmers in the future. As part of Danish Agro group, we are sure that we can make Kalmar Lantmän a modern, competitive partner to Swedish farmers, he says.

Kalmar Lantmän was established in 1942 after a merger of a number of local cooperatives in the Kalmar region and today 1,925 Swedish farmers are members of the company. It is the plan that Danish Agro will take over the agribusiness activities of Kalmar Lantmän except their machinery business which has been sold to Svenska Lantmännen recently. I 2015 Kalmar Lantmän will have a turnover of about 130 million EUR after having sold off their machinery business. The company is based in the city of Kalmar with a feed factory, store and harbor facilities. Furthermore Kalmar Lantmän has departments covering the Kalmar region along with 11 hobby shops in the same area.

Since 2005, Danish Agro group has been active in Sweden where the group on behalf of a number of Swedish agribusinesses has been coordinating procurement through the company DLA Agro Sverige. Today DLA Agro Sverige annually has a turnover of 107 million EUR. Since 2007, Danish Agro group has been active within premix and vitamin activities in Sweden through the subsidiary Vilomix Sweden, which has an annual turnover of 16 million EUR. Since 2012, the group has been active within agribusiness retail activities through Swedish Agro AB, which has an annual turnover of 34 million EUR. Finally, since 2010 Danish Agro group has been the owner of DAVA Foods Sweden – previously Svenska Lantägg – which annually has a turnover of about 67 million EUR. All in all, Danish Agro group has a strong foothold on the Swedish market which will now be strengthened when Kalmar Lantmän becomes part of the family. It is the plan that Kalmar Lantmän will merge with Swedish Agro.

The transaction awaits approval from the Swedish competition authorities.