Danish Agro aquire part of Getreide AG
Danish Agro and Vestjyllands Andel takes over the agribusiness activities of Getreide AG..
Danish Agro: Press release.
Danish Agro, Vestjyllands Andel and Agravis Raiffeissen AG acquire Getreide AG’s German and Hungarian agribusiness activities
Danish Agro and Vestjyllands Andel are to take over the agribusiness activities of Germany's biggest private agribusiness company, Getreide AG, as from 1 February 2015. The business assets acquired represent a turnover of around EUR 1 billion. The acquisition is made in partnership with AGRAVIS Raiffeisen AG, via the three companies' joint venture. Danish Agro and Vestjyllands Andel will own 75%, and AGRAVIS 25% of the new assets.
A total of 11 of Getreide AG’s subsidiaries will be part of the acquisition, representing a strong presence via 70 branches in the German states of Schleswig-Holstein, Mecklenburg-Vorpommern, Brandenburg, Sachsen, Sachsen Anhalt and Niedersachsen. Getreide AG’s agribusiness in Hungary is also part of the deal, bringing the Danish Agro group onto this market for the first time.
The acquisition involves 550 employees and an annual turnover of 2.5 million tons of crops, 400,000 tons of compound feed, 400,000 tons of fertilizer, 60,000 tons of seed and EUR 60 million worth of plant protection sales.
Getreide will continue as an independent business focusing on industrial activities within rapeseed processing, malt production and wholesale grain trading. Consequently, the agribusiness activities acquired will come under a new holding company yet to be named and to be based in Rendsburg, Germany
Danish Agro's CEO, Christian Junker sees significant potential in the acquisition.
- Getreide's agribusiness stems from proud tradition and a long history and will be an excellent supplement to our other activities within the group. The branches and subsidiaries acquired are strong in the northern and eastern parts of Germany, which means they fit in well with our agribusiness activities in Scandinavia and the Baltic Region where we will now be even stronger. What's more, there will be plenty of synergies that can be utilized. I look forward to strengthening our agribusiness interests and the results to be gained over the next few years for the group, our customers and our owners, says Christian Junker.
According to Christian Junker, the German agribusiness market contains a host of exciting business opportunities.
- We have a good feel for the German market through our existing activities there, including our strategic partnership with AGRAVIS, with whom we are successfully in the process of developing a range of international activities. The German market is exciting, and contains a lot of business opportunities that I am sure we will be able to exploit together, says Christian Junker
The newly-acquired businesses have several large-scale silo facilities located at deep-water harbours at logistic hubs. Such facilities can be used in a wider perspective.
According to Christian Junker, the acquisition of Getreide is an important step towards strengthening the Danish Agro group's competitiveness internationally.
- Our competitiveness on the global stage will be boosted considerably, something we need to be able to service our customers and owners in the best way possible. The acquisition is part of the growth needed for us as a group to be able to deliver the products and services our customers want more cheaply and efficiently. We also need to be able to offer sufficient distribution resources to our suppliers to be able to get the best deals to the benefit of our customers and owners, adds Christian Junker.
The acquisition of Getreide's agribusiness will mean that the Danish Agro group will approach close to a turnover of EUR 4,7 billion in 2015.
The acquisition is subject to final approval by the German competition authorities.