Acquisition of Kalmar Lantmän approved
Danish Agro group's acquisition of the Swedish agribusiness Kalmar Lantmän has overcome its final hurdle.
All Danish Agro group Swedish agribusiness activities will be brought under our Swedish Agro AB subsidiary. Swedish Agro’s existing activities will be merged with those in Kalmar Lantmän. Swedish Agro’s CEO, Björn Skogsberg, looks forward to being able to get started:
“We are delighted that the deal has now been approved by the Swedish Competition Authority. The plan now is to initiate fast, efficient integration between our existing facilities in Staffanstorp and the new ones in Kalmar. We will also merge Vilomix Sweden into the same organisation, to coordinate all our market-related activities in Sweden.
We believe there is a lot of potential on the Swedish market and in the activities we have now acquired, including the most modern feed factory in Europe on the harbour in Kalmar, with a capacity of 275,000 tons. That means a lot of exciting opportunities, and we plan to expand the facilities there to be able to supply even more Swedish farmers with quality feeds from Kalmar. We also bring expertise and know-how within consultancy, sales, optimisation and quality closer to our activities in Sweden. We are convinced that Swedish Agro represents a modern, highly competitive partner with a strong setup for Swedish farmers.”
Danish Agro’s Group Ceo, Christian Junker, also looks forward to working closer with Swedish farmers.
“The acquisition gives Swedish Agro a much bigger and stronger platform to work from in Sweden. Kalmar will be the future head office and hub for the Danish Agro group's agribusiness activities in Sweden, where import of e.g. ingredients and fertiliser plus export of grain will be handled. We will carry much more weight and thus be able to compete more effectively on the Swedish market to the benefit of Swedish farmers, for whom we will of course do our best to be as efficient and competitive a partner as possible,” concludes Junker.
Kalmar Lantmän was founded in 1942 by the merger of a number of cooperatives in the Kalmar region, and had 1,925 Swedish farmers as members at the time of the sale. The company turned over around DKK 1 billion in 2015 after the sale of machinery. The company is concentrated in Kalmar, with a feed factory, warehouse and port facilities. Kalmar Lantmän also has a distribution network throughout the Kalmar region plus 11 retail outlets in the same area.
The Danish Agro group has been active in Sweden since 2005 when it started to coordinate buying on behalf of a number of Swedish agribusiness companies via DLA Agro Sverige. DLA Agro Sverige now turns over around DKK 700 million and since 2007 the Danish Agro group has also been active within premix and vitamins via its subsidiary Vilomix Sweden, a company with a turnover of around DKK 135 million. Retail was added via Swedish Agro in 2012. Turnover is now DKK 200 million p.a. The Danish Agro group has also owned DAVA Foods Sweden – the former Svenska Lantägg – since 2010, turning over around DKK 500 million. All-in-all, Danish Agro expects consolidated turnover on the Swedish market to exceed DKK 2.5 billion in 2016.