Baywa (LON:0AH7) has announced that it is to acquire Dutch specialty trader, Thegra Tracomex. Thegra deals in speciality products such as oilseeds, pulses, by-products from grain and oil-seed processing, a wide range of grains, and organic cereals. It has trading offices in the Netherlands, Belgium and Poland, which collectively handle around 1m tonnes of produce each year. The financial details of the transaction have not been disclosed.
Acquisition a perfect fit with stated strategy
BayWa created a platform with the scale to trade internationally through the acquisition of Cefetra and Bohnhorst Agrarhandel in 2012. It created an entity trading around 30m tonnes of grain a year globally (for comparison, the average German grain harvest is c 45m tonnes) with the reach to source products in South America and Eastern Europe and satisfy rising demand in Africa and Asia. Having achieved this scale, recent acquisitions have focused on speciality products and operations where BayWa can provide complementary margin enhancing services in addition to matching buyers to sellers and organising logistics. In November 2015 BayWa acquired UK-based Wessex Grain, which markets feed grains, milling wheat and malting barley and offers grain cleaning, drying and storage services. In January 2016 BayWa acquired Hamburg-based Evergrain, which, when combined with BayWa’s existing operations, created one of the top five businesses globally trading malting barley with preferred supplier status to international breweries.
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