Danish Agro acquires Latvian agribusiness
Danish Agros subisdiary Baltic Agro Latvia has just concluded a deal to acquire 60% of the shares in agribusiness company Tukuma Straume
Tukuma Straume is based in Tukums, close to Riga, Latvia. Part of the deal includes acquisition of the remaining 40% of the shares at a later date.
The company has 85 employees and is active within traditional agribusiness, feed production and grain intake, along with a specialist factory producing feed for livestock and pets. It has total warehouse capacity for ingredients of 45,000 tonnes, and 100,000 tonnes of grain storage capacity. The grain facilities are located in Tukums, handy for exporting from Riga's harbour, and in the south east of the country at Daugavpils.
"We are highly satisfied with the deal struck with Tukuma Straume, which will supplement our current activities and open up new opportunities for trading with Latvian farmers. The acquisition gives us increased presence on the market, a more flexible setup and boosts feed production capacity by no less than 46,000 tonnes," says Group CEO of Danish Agro, Henning Haahr.
"It also gives us the opportunity to strengthen our position within our own pet food production in Latvia and the group's other subsidiaries. We currently have around 100 retail outlets for hobby and outdoor enthusiasts which stock pet foods. The expertise and production capacity we now gain in Latvia will be make a big difference here," states Haahr.
Finally, the acquisition makes a number of synergies possible across the group's subsidiaries, as Tukuma Straume is in the same area as a number the group's other member companies, and neighbour to the premix and vitamin business, Vilomix Baltic.
The sale is contingent on approval from the Latvian authorities.