3 July 2018
Following the announcement on 20 February last, ForFarmers (‘ForFarmers’) announces that it is operational in Poland through Tasomix as all conditions for closing the earlier announced 60% share purchase transaction have been fulfilled including approval by the competition authorities. Through this transaction ForFarmers is operational in five countries and has taken another step in strengthening its position as the leading feed company in Europe.
ForFarmers has paid PLN 242 million (currently approximately €57.1 million) in cash and has received 60% of the shares. This first payment comprises two operational mills, a new head office and an initial payment for the new feed mill under construction. A second payment for this transaction (i.e. the 60% stake in Tasomix) will be made in 2021, the amount of which fully depends on specified operational targets to be delivered by the new feed mill. ForFarmers will fully consolidate the Tasomix results in its consolidated financial statements as of 1 July 2018, 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. The agreement includes a call and put option for the remaining 40% shares.
Tasomix, mainly active in the poultry sector, has strong management and some 250 employees. The company operates two production facilities (in Biskupice and Kaboro) with a joint capacity of approximately 450kT and is currently manufacturing its first quantities of feed in its new facility in Pionki. In 2016, Tasomix produced 395kT feed, mainly for poultry farmers, but also for ruminant and pig farmers. The head office of Tasomix is located next to the largest mill in Biskupice (south west of Warsaw). The new feed mill in Pionki (south of Warsaw) has a maximum capacity of approximately 350kT. This mill will manufacture feed for a dedicated poultry integrator, which is linked to the owners of Tasomix. The relating agreement has been signed. The mill will also serve non-integrated poultry farmers and pig farmers.
Tasomix provides ForFarmers 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, serving the local market and exporting to mostly EU countries. ForFarmers sees opportunities to benefit from the expertise within Tasomix and to leverage its capabilities in Poland. This transaction is in line with ForFarmers’ Horizon 2020-strategy to grow both organically and through acquisitions in Europe and surrounding regions and strengthens ForFarmers’ poultry proposition.