Greenyard Group agreed to sell cvoy agricultural business investment fund of 120 million euros after the fall of profits in the past year, according toFruitnet.com.
As part of the unit to a new owner moved and compost production in Poland and the Ukraine (previously Mykogen), which were acquired by Grinyard summer of last year, the investment fund Abris Capital Partners for about $ 90 mln. Euros.
The company announced last week that it would sell assets to improve profitability.
Agricultural business “Grinyard” is the leader on the European market for the production of substrates, mixtures and additives for the production of plants, and compost for mushroom. Products are exported to over 60 countries, with 14 sites in Europe and Russia.
Straco buyer is a Belgian investment fund, which describes itself as an active player in the development of real estate projects.
The last 12 months was a difficult Grinyarda. Falling sales in Belgium and Germany, 2.4 per cent drop in profits in the 2017/18 marketing year in the Fresh division. Total sales amounted to 4.18 billion. Euros, which is 1.7 percent lower than a year earlier.
At the same time, the agricultural division has shown to perform well, increasing by 20.2 per cent, largely due to the acquisition of Mykogen.
CEO of Greenyard Hein Deprez said the sale will also provide a means for the sum of 150 million pounds sterling bond payment next year.
“We are pleased to have reached an agreement with the acquisition of our Straco selhozpodrazdeleniya. Straco shares our belief in the importance of high-quality substrates “, – said Deprez.
“Thus, we are convinced that Straco will be a good home for our agricultural division. Today, we pay special attention to improving the profitability and alignment of our balance sheet. In our other two segments (Fresh and Long Fresh) Our strategy of building strong relationships with its customers remains unchanged.
We believe that this sale is an important step on the path to a stronger Greenyard. In addition, the sale of agricultural business in conjunction with the agreement with creditors and plan to reduce the leverage will allow Greenyard necessary means to repay retail bonds in the summer of next year. “