25/07/2011: GrainCorp acquires GermanMalt for EUR 58m
25/07/2011 GrainCorp acquires GermanMalt for EUR 58m
Story GrainCorp today announced that it had entered into a binding agreement (ëAgreementí) to purchase GermanMalt GmbH & Co. KG for an enterprise value of EUR 58m (AUD 77m).
GrainCorp Managing Director and CEO Alison Watkins said, ìThe European barley and malt sector has a major influence on world markets, as around half the worldís malt exports originate there and it is strategically important for GrainCorp to be an active participant in that market. The sector is also reshaping and now is the right time to enter Europe to take advantage of these changes.
ìGermanMalt fits with our strategy of pursuing grain based opportunities related to our existing businesses and growing as an ëend-to-endí grain supplier and processor.î
The acquisition will mean GrainCorpís malt sales into the growth regions of Africa and South America will be more competitive, and provides GrainCorp with a stronger customer supply proposition.
ìWith GermanMalt, GrainCorpís malt portfolio is strengthened, and our capability to meet the needs of brewers will be enhanced. The acquisition diversifies our earnings base and creates growth opportunities in the region. Our recently opened Hamburg office will play an important part in delivering synergies associated with this acquisition, as will the ability to use GermanMalt as an additional source of supply to support our existing malt sales from North America and Australia.
ìIt is also a good news story for Australian agribusiness. GrainCorp is proud to be an Australian company, with a strong domestic base, growing as a valuable link in the international food chain,î Ms Watkins said.
GermanMalt has four malt houses, with 190,000 tonnes of malting capacity PA, located in the German cities of Worms, Muelheim/Ruhr, Sangerhausen and Clingen.
Source Stock Exchange Announcement(s)
Value GBP 51m (deal size)
Stake Value N/A
25/07/2011: GrainCorp today announced that it had entered into a binding agreement ('Agreement') to purchase GermanMalt GmbH & Co. KG
for an enterprise value of EUR 58m (AUD 77m).
GrainCorp Managing Director and CEO Alison Watkins said, "The European barley and malt sector has a major influence on world markets, as around half the world's malt exports originate there and it is strategically important for GrainCorp to be an active participant in that market. The sector is also reshaping and now is the right time to enter Europe to take advantage of these changes.
"GermanMalt fits with our strategy of pursuing grain based opportunities related to our existing businesses and growing as an ëend-to-endí grain supplier and processor."
The acquisition will mean GrainCorp's malt sales into the growth regions of Africa and South America will be more competitive, and provides GrainCorp with a stronger customer supply proposition.
"With GermanMalt, GrainCorp's malt portfolio is strengthened, and our capability to meet the needs of brewers will be enhanced. The acquisition diversifies our earnings base and creates growth opportunities in the region. Our recently opened Hamburg office will play an important part in delivering synergies associated with this acquisition, as will the ability to use GermanMalt as an additional source of supply to support our existing malt sales from North America and Australia."
"It is also a good news story for Australian agribusiness. GrainCorp is proud to be an Australian company, with a strong domestic base, growing as a valuable link in the international food chain," Ms Watkins said.
GermanMalt has four malt houses, with 190,000 tonnes of malting capacity PA, located in the German cities of Worms, Muelheim/Ruhr, Sangerhausen and Clingen.
Source Stock Exchange Announcement(s)
Value GBP 51m (deal size)
Stake Value N/A