Jan Gijsbertus de Boer, CEO and majority shareholder of DN Agrar Group: The takeover transaction of the Lacto Agrar SRL farm was successfully completed at the end of December 2021. For the Apold farm, we estimate that the transaction will be completed in March this year. With these acquisitions, DN Agrar Group SA will become the largest livestock farm with cow’s milk production in Romania.
The group of companies will invest 3 million euros to increase milk production by 50% in 2022
DN Agrar Group, a group of companies with a Dutch majority shareholder that operates in areas such as animal husbandry, agricultural plant production, services in agriculture, logistics, transport, tourism and consulting services for business and management, received the approval of the authority of the Competition Council to acquire the DN Agrar Apold cow farm from the Dutch Investment Fund Garbova CV.
In order to carry out this transaction, the DN Agrar group obtained an investment loan in the amount of 13.8 million euros from ING Bank, for which the financing contracts will be signed at the end of January 2022. Following the completion of the transaction, the group will own 100% of the share capital of the Apold farm.
“The loan of 13.8 million dollars from ING is divided into two projects. From the total loan, the sum of 10.8 million euros will be used for the purchase of the Apold farm and 3 million euros is an investment loan for increasing milk production by 50% and storing fodder”, says Jan Gijsbertus de Boer, CEO of DN Agrar Group, for ZF.
“Our target is to complete this investment by the end of the year.”
At the end of December 2020, the Apold farm had a net turnover of 41.6 million lei, fixed assets of 44 million lei and equity of 24.5 million lei. After the completion of the transaction, the financial position of the Apold farm will be added to the financial performance of the group of companies DN Agrar Group, which on December 31, 2020 had a turnover of 38.2 million lei and fixed assets of 57.6 million lei .
The main objective after taking over the Apold farm is to increase the milk production capacity of the farm by 50% by the end of this year. The investment project includes the construction of an additional milking room, shelters for animals, increase in livestock and additional feed storage hall.
The DN Agrar Apold farm has integrated plant and livestock production, as well as farm management in the agribusiness of the DN Agrar group of companies, so that after the completion of the takeover transaction, a transition process of these activities will not be necessary.
“The takeover transaction of the Lacto Agrar SRL farm was successfully completed at the end of December 2021. For the Apold farm, we estimate that the transaction will be completed in March this year. With these acquisitions, DN Agrar Group SA will become the largest livestock farm with cow’s milk production in Romania. Thus, we have achieved our proposed objective with the launch of the steps for listing the company on the AeRO market of the Bucharest Stock Exchange, namely to be the largest producer of cow’s milk and the market leader in Romania”, says Jan G. de Boer.
At the end of December 2021, DN Agrar received the favorable opinion from the authority of the Competition Council of Romania for the acquisition of the Lacto Agrar farm from the Dutch Investment Fund Eurolapte BV At the beginning of this year, DN Agrar completed the transaction of taking over the social shares for 4 5 million euros.
The funds of 24.8 million lei attracted from investors following a private placement in July 2021, through which the company sold 25.7% of the share capital, were used for the acquisition of the Lacto Agrar farm, according to the objective established in the issue prospectus . The share offer was brokered by BRK Financial Group.
According to the calculations made by ZF, the company would start trading on the AeRO market of BVB at an anticipated capitalization of 96 million lei.
The DN Agrar group of companies was established in Romania in 2008, with the opening of the first member companies – DN Agrar Group SA and DN Agrar Cut SRL. Later, the companies DN Agrar Trading SRL, DN Agrar Service SRL, DN Agrar Prodlact SRL, DN Farm Concept SRL, DN Agrar Straja SRL, DN Agrar Bio SRL, DN Agrar Greenfield SRL, DN Agrar Logistics SRL and Pensiunea Casa Buna were also established. SRL.
In 2020, DN Agrar Group achieved a net profit of 5.5 million lei, up 65% compared to 2019, in the context of businesses of 38.2 million lei, plus 4.2%. Last year, the group’s debts reached 50.7 million lei.
Jan Gijsbertus de Boer, CEO and Chairman of the Board of Directors, controls, through the Dutch company AM Advies BV, the difference of 74.3% of the share capital of DN Agrar Group.