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Greencore sell malt business - click here to leave a comment

'); document.write('Pat O' Keeffe | 10 February 2010

Greencore sell malt business to French co-op

Pat O’ Keeffe

Greencore Group plc has today (Thursday 10 February) confirmed the sale of its malt business to French cooperative AxéréalUnion De Coopératives Agricoles ("Axéréal") for €116.25 million

Greencore Malt comprises three Greencore owned malting businesses based in the United Kingdom (Pauls Malt), Ireland (Minch Malt) and Belgium (Belgomalt). The seven malting plants have a combined annual output capacity of approximately 520,000 tonnes.

Based in the grain producing Centre region of France, Axéréal was formed in July 2009 from the merger of two French co-operatives, Agralys and Epis-Centre. The co-op purchases 5 million tonnes of cereals annually and trades 8 million tonnes. The co-operative Group has 13,000 farmer members, 3,500 employees and revenues of €2.8 billion.

This acquisition will propel Axéréal’s malting business, Boortmalt Group, from 7th to 5th largest maltster worldwide, increasing their capacity from 620,000 tons to over 1.1 million tonnes of malt. The Group will have malting plants in 11 European locations, and a strong presence in key markets including South and Central America, Africa, Asia and Europe.

Boortmalt Group has the largest malting plant in Europe located in Antwerp with a production capacity of 320,000 per year.

Malt was a reliable profit generator for the Greencore group. Figures released today show that Greencore Malt generated operating profit of €20.5m on sales of €217.2m in the year to 25 September 2009. In 2008, operating profit of €23.9m was generated on sales of €250.3m. In 2007, operating profit for the malt division was €13m on sales of €196.3m.

Greencore will retain some property assets, including circa 50 acres at Athy.

Axéréal Chief Executive Officer, Dominique Bamas, said:

“As a major farmer-owned co-operative group, Axéréal’s strategy is to invest in, and develop, quality downstream grain businesses that help ensure the proper functioning of competitive markets for cereals. We seek to build strong positions for each of our processing businesses to create influential players on a global stage, that deliver quality products, innovation and service to our customers. Our acquisition of Greencore Malt will be a significant step in delivering on this strategy and establishes Boortmalt as a leading player in the global malt business.”

Dominique Bamas said: “Axéréal has a proud heritage of supporting farmers in producing cereals at all stages from the supply of certified seed, fertiliser and inputs, production advice and logistical support. As ultimately a farmer-owned business, we look forward to supporting fellow growers in Ireland.”

Axéréal’s trading activities focus on three areas, namely Grain (seed supply, farm advisory, collection, marketing), European trade (purchase and sale of grain, and logistical services), Processing (malting, flour milling, animal feeds, oilseed crushing and bioethanol production).

Headquartered in Antwerp, Belgium, the Boortmalt Group is led by CEO, Yvan Schaepman. Following the deal, he will be supported by David Wilkes, the current CEO of Greencore Malt, who will join Boortmalt as its Deputy CEO.

Post acquisition, the Boortmalt Group will have 11 malting plants in Europe: Antwerp, Ghlin and Gembloux in Belgium, Issoudun in France, Knapton and Bury St. Edmonds in England, Athy in Ireland, Glenesk and Buckie in Scotland, Dunaujvaros in Hungary and Nova Gradiska in Croatia.

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