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Ukrainian Grain & Oilseed Market

Ukrainian Grain&Oilseed Market

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BayWa AG announces the acquisition of two grain traders, turning the company into a global agricultural trader

30.09.2012 15:48 "Agro Perspectiva" (Kyiv) — The international trading and services company BayWa AG acquires 100% of the internationally operating grain trader Cefetra B. V. (the Netherlands), as well as a majority stake in the North German agricultural trading group Bohnhorst Argrarhandel GmbH. Both transactions — subject to approval of the responsible antitrust authorities — will be completed by January 1st, 2013. The purchase price for 100% of the shares of Cefetra and for 60% of the shares of Bohnhorst amounts to Euro 125 million and Euro 36 million, respectively. 40% of Bohnhorst’s shares will remain with the seller, Helmut Bohnhorst jr., who will also continue as the company’s managing director.

Following these acquisitions, BayWa’s total traded grain volume increases to 28 million tonnes and its turnover increases at least to Euro 15 billion.

«BayWa not only strengthens its position as an important European grain trader, but also enforces its global footprint in the agricultural commodities space», explains BayWa CEO Klaus Josef Lutz. BayWa is continuing its strategy to become more prominent in the international market for agricultural trading. «With these acquisitions we have reached a new milestone in further developing one of our core divisions internationally».

The acquisitions also address recent market developments, as BayWa perceives a consolidation within the grain trading sector. Increased competition, mainly triggered by a higher demand from Asia and Africa and the search for access to supply in South America and Eastern Europe, has weighted the importance of scale in the trading space.

Cefetra B. V., headquartered in Rotterdam, will be acquired from ForFarmers Group B.V and the agricultural cooperatives Agrifirm Group B. V. and AgruniekRijnvallei B. V. The company trades grain on a global scale and is a leader in the European supply market for the compound feed sector in terms of soy, grain and sunflower & rapeseed meals. The company has storage and port sites throughout Europe, as well as a sourcing network in Poland.

The Bohnhorst group’s core business is agricultural trading with extensive sourcing capacities, mainly in Eastern Germany. Furthermore, it owns sites at deep-sea ports along the Baltic Sea coast. «Besides our own locations, we will now have direct access to the most important German waterways as well as the Baltic Sea and consequently, to the developing markets in Eastern Europe. This is a significant advantage for the sourcing and marketing of grains», says Lutz. «Due to excellent management and employee performance, Bohnhorst has an excellent market position and is extremely successful», Lutz adds. The financial strength of the company is a good foundation for growing together, especially in Eastern Europe.

«The two acquisitions provide the BayWa Group access to today’s and tomorrow’s grain markets all over the world. We have secured direct access to raw materials, which is essential given the recent shift in market dynamics. Additionally, they have strengthened our logistics’ network», emphasises Lutz. BayWa underlines that it will continue offering its partners and customers new market solutions through the international expansion of its sourcing and distribution channels.

According to the CEO, both acquisitions will be financed with the sales proceeds following the earlier announced real estate disposals.

BayWa AG:

BayWa AG is an international trading and service company, with a focus on the sectors agriculture, energy and construction. In 2011 the company reported sales of Euro 9.6 billion and an EBIT of Euro 151.4 million. Sales for the agricultural division (including trading of grains, other agricultural products, operating supplies and agricultural technology) amounted to approximately Euro 5 billion, with an EBIT of Euro 56 million. BayWa operates and owns 300 agricultural trading sites in Germany and has an extended network of 600 sites through cooperations in Austria and the Czech Republic. In 2011, the total traded volume for grains was around 5.5 million tonnes. BayWa’s grain storage capacity amounted to just under 2 million tonnes. Furthermore, it operates 18 river ports and has approximately 17,000 employees worldwide.

Cefetra B.V.

Cefetra is an international trading company that solely trades in agricultural commodities. Products are mainly sold to the animal feed, food and bio-fuel industry, with 95% of the customers being active in the animal feed industry. Sales in 2011 amounted to Euro 4.6 billion with an average EBIT over the last 5 years of Euro 26 million. Cefetra´s total traded volume in 2011 amounted to nearly 20 million tonnes. It’s business model is characterised by flexibility, mainly driven by its international sourcing capacity and distribution network. Cefetra has offices in the UK, Ireland, the Netherlands, Hungary, Poland and Canada, as well as storage sites in the UK, Ireland, the Netherlands, Belgium, Germany, France, Latvia, Poland, Hungary and Romania. Cefetra has 210 employees. While Cefetra’s current shareholders are focused on growth and want to prioritise their resources for their own animal food activities they have decided to sell Cefetra to a strategic partner. With BayWa AG Cefetra B. V. has found a company which is prepared to continue investing in its activities.

Bohnhorst Agrarhandel GmbH

The Bohnhorst GmbH is an international agricultural trading company, which concentrates on the North and East German markets. It also has facilities for coverage, storage and distribution in Poland. Two sites are located at the coast of the Baltic Sea, others are situated along the rivers Elbe and the Weser and the Mittellandkanal. The company generated revenues of Euro 468 million in 2011. During the last 5 years the EBIT was Euro 13 million on average. The company’s main focus is grain trading, which generated Euro 310 million of the revenues in 2011. The other business segment focuses on the distribution animal feed. Bohnhorst has 213 employees.

Agro Perspectiva

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