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February 26, 2018


ForFarmers buys 60% of shares in Poland's Tasomix
 


ForFarmers N.V. signed a share purchase agreement with the owners of Tasomix to acquire 60% of their shares.

 

Tasomix is a large and innovative Polish feed company, which is mainly active in the poultry sector.


Through the transaction, ForFarmers adds its fifth country of operation and takes another step in strengthening its position as the leading feed company in Europe.

 
The move 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.

"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," said Yoram Knoop, CEO of ForFarmers.
 
"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."
 
With Tasomix, ForFarmers has acquired a business with two operational production facilities and one new site, which is under construction. The operational mills are located in Biskupice Ołoboczne, some 250 km south-west of Warsaw, and Myślibórz, about 200 km west of the Polish capital. Their joint capacity is approximately 450 kilotonnes. These mills mainly produce feed for poultry farmers but also serve ruminant and pig farmers.

 

The head office of Tasomix is located in Biskupice Ołoboczne, next to the mill. The feed mill being constructed in Pionki (approximately 100km south of Warsaw) has a maximum capacity of approximately 350 kiltonnes 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 395 kilotonnes of feed manufactured in its two operational mills, with a revenue of PLN429 million (US$127 million) and a normalised EBITDA of approximately PLN34 million (approximately US$10.1 million).


The company has 180 employees and is currently ranked number four in the Polish feed market.

 
At closing of the transaction, ForFarmers will make a first payment of PLN234 million (US$69.2 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.


"We are excited about this agreement. It means that we will have access to a very professional and financially solid organisation with international operations and be able to benefit from the large pool of knowledge and experience," Ireneusz Sobczak, managing director of Tasomix, said.


"This will enable us to enhance our growth ambition of becoming a leading Polish feed company."


Tasomix will continue operating under the Tasomix brand.

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