Deal includes two feed factories and inputs for plant cultivation
Lantmännen is acquiring the cattle feed business from the Finnish listed company Raisio Group. The acquisition is part of Lantmännen’s growth strategy in the Baltic Sea region and strengthens Lantmännen’s presence on the Finnish market.
Lantmännen is acquiring Raisio’s cattle feed business including two feed factories and sales of inputs for plant cultivation. Raisio’s cattle feed business is a big player on the Finnish agricultural market, with a 35 percent market share of the Finnish cattle feed market and had sales in 2017 of EUR74 million (US$87 million). Acquiring Raisio’s cattle feed business enables Lantmännen to further broaden its offer and strengthen its presence within agribusiness on the Finnish market.
“The acquisition strengthens Lantmännen’s position in the grain value chain in the Baltic Sea region. We already have large holdings in the bread and malting industry plus an established agriculture business through Lantmännen Agro Oy, with independent distributors throughout the country. Adding yet another business segment within our agriculture-based business in Finland makes us a more complete business partner for Finnish farmers,” said Per Olof Nyman, group president and CEO, Lantmännen.
The acquisition includes more than 70 employees. In addition to its principal business, feed production, Raisio’s cattle feed business pursues research and development into animal feed and is a leader in the digitalization of agriculture services.
The acquisition is a strategically important step that will enable further development and growth in Finland.
“Raisio has a well-established feed business that complements our present offer to Finnish farmers via Lantmännen Agro Oy. We see synergies with our existing business, but above all, the acquisition will enable us to broaden our offer and become a leading supplier to Finnish agriculture customers,” said Elisabeth Ringdahl, head of agriculture sector at Lantmännen.
The transaction is expected to be completed no later than the third quarter of 2018, after the approval of the relevant competition authorities.