ForFarmers N.V.: ForFarmers extends European leadership position by creating joint venture with Tasomix in Poland
February 20 2018 - 12:52AM
Lochem, 20 February 2018
ForFarmers extends European
leadership position by creating joint venture with Tasomix in
Poland
('ForFarmers') signed a share
purchase agreement with the owners of the Polish company Tasomix to
acquire 60% of their shares. Tasomix is a large and innovative feed
company, mainly active in the poultry sector. Through this
transaction, ForFarmers adds its fifth country of operation and
takes another step in strengthening its position as the leading
feed company in Europe.
This step is in line with ForFarmers' Horizon
2020-strategy to grow both organically and through acquisitions in
Europe and surrounding regions. Tasomix provides access to a
European market with an above average growth rate in the attractive
poultry sector. In recent years, Poland has become the largest
broiler producing country in Europe, servicing the local market and
exporting to mostly EU countries.
Yoram Knoop, CEO of ForFarmers: 'We are pleased to
be making the first step into Poland. We see opportunities to
benefit from the expertise within Tasomix and to leverage our
capabilities in Poland. This step also strengthens our poultry
proposition. We are looking forward to joining forces with the
strong local management team that will remain in place, to make
Tasomix an even stronger, leading, player in the Polish
market'.
Through this transaction, ForFarmers acquires a
business with two operational production facilities and one new
facility, which is under construction. The operational mills are
located in Biskupice Oloboczne (some 250 km south-west of Warsaw)
and Myslibórz (some 200 km west of Warsaw). Their joint capacity is
approximately 450kT. These mills mainly produce feed for poultry
farmers, but also serve the ruminant and pig farmers. The head
office of Tasomix is located in Biskupice Oloboczne, next to the
mill. The feed mill being constructed in Pionki (approx. 100
km south of Warsaw) has a maximum capacity of approximately 350kT,
and is scheduled to open later this year. This mill is destined to
manufacture feed for a dedicated poultry integrator, which is
linked to the owners of Tasomix. A supply agreement has been put in
place with this integrator. The mill will also serve non-integrated
poultry farmers and pig farmers.
In 2016, Tasomix sold 395kT of feed, manufactured
in its two operational mills, with a revenue of PLN 429
million (currently approximately €103 million) and a normalised
EBITDA of approximately PLN 34 million (currently
approximately €8 million). Tasomix has 180 employees. Based on
these results, Tasomix currently ranks number 4 in the Polish feed
market.
At closing of the transaction, ForFarmers will
make a first payment of PLN 234 million
(currently approximately €56 million) in cash and will receive
60% of the shares. The second payment will be made in 2021 and is
dependent on achieving specified targets, relating to future
operational results of Pionki. The agreement includes the
possibility for ForFarmers to over time obtain the remaining
shares. ForFarmers plans to fully consolidate the Tasomix
results, but shall run the company as a true joint venture cross
leveraging the strengths of both companies. Tasomix is expected to
contribute to the 2018 earnings per share.
Closing of the agreement is expected to take place within
approximately three months after today, subject to obtaining the
required approval of the Polish Competition Authorities.
Ireneusz Sobczak, Managing Director of Tasomix:
'We are excited about this agreement. It means that we will have
access to a very professional and financially solid organization
with international operations and be able to benefit from the large
pool of knowledge and experience. This will enable us
to enhance our growth ambition of becoming a leading Polish
feed company.'
Tasomix will become part of the ForFarmers cluster
Germany, Belgium and Poland, managed by Adrie van der Ven (COO).
Tasomix will continue operating under the Tasomix brand whilst
adding 'Grupa ForFarmers' to its logo, indicating the close
cooperation between ForFarmers and Tasomix.
This press
release contains information, which qualifies
as inside information within the meaning of article 7, paragraph 1
of the EU Market Abuse Regulation.
Note to the editor / For additional information:
Caroline Vogelzang, Director Investor Relations and
Communications
T: 0031 573 288 194 M: 0031 6 10 94 91 61
E: caroline.vogelzang@forfarmers.eu
Please find attached a
PDF of the press release and a PDF of the logo of Tasomix
ForFarmers Company profile
ForFarmers N.V.
('ForFarmers', Lochem, the Netherlands) is an internationally
operating feed company that offers total feed solutions for
conventional and organic livestock farming. ForFarmers gives its
very best "For the Future of Farming": for the
continuity of farming and for a financially secure sector that will
continue to serve society for generations to come in a sustainable
way. By working side-by-side with farmers ForFarmers delivers real
benefits: better returns, healthier livestock and greater
efficiency. This is achieved by offering tailored and Total Feed
solutions and a targeted approach with specialist and expert
support.
With sales of approximately 9.3 million tons of
feed annually, ForFarmers is market leader in Europe. ForFarmers
has approximately 2,300 employees and production facilities in the
Netherlands, Belgium, Germany and the United Kingdom. In 2016,
revenues amounted to over €2.1 billion.
ForFarmers N.V., Postbus 91, 7240 AB Lochem, T:
+31 (0)573 28 88 00, F: +31 (0)573 28 88 99
info@forfarmers.eu, www.forfarmersgroup.eu.
FORWARD-LOOKING STATEMENTS
This press
release contains forward-looking statements, including those
relating to ForFarmers legal obligations in terms of capital and
liquidity positions in certain specified scenarios. In addition,
forward-looking statements, without limitation, may include such
phrases as "intends to", "expects", "takes into account", "is aimed
at", ''plans to", "estimated" and words with a similar meaning.
These statements pertain to or may affect matters in the future,
such as ForFarmers future financial results, business plans and
current strategies. Forward-looking statements are subject to a
number of risks and uncertainties, which may mean that there could
be material differences between actual results and performance and
expected future results or performances that are implicitly or
explicitly included in the forward-looking statements. Factors that
may result in variations on the current expectations or may
contribute to the same include but are not limited to: developments
in legislation, technology, jurisprudence and regulations, share
price fluctuations, legal procedures, investigations by regulatory
bodies, the competitive landscape and general economic conditions.
These and other factors, risks and uncertainties that may affect
any forward-looking statements or the actual results of ForFarmers,
are discussed in the last published annual report. The
forward-looking statements in this press release are only
statements as of the date of this document and ForFarmers accepts
no obligation or responsibility with respect to any changes made to
the forward-looking statements contained in this document,
regardless of whether these pertain to new information, future
events or otherwise, unless ForFarmers is legally obliged to do
so.
180220 logo Tasomix
Press release_ForFarmers creates joint venture with Tasomix in
Poland
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The issuer of this announcement warrants that they are solely
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information contained therein.
Source: ForFarmers N.V. via Globenewswire
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