FirstFarms A/S and Dan-Farm Holding A/S has today signed an agreement, which entails that FirstFarms A/S purchases Dan-Farm Holding A/S, who owns 80 percent of the Hungarian company Dan-Farm Hungary Kft.
- The purchase of a pig production close to our other activities within plant production and milk production fits very well in our strategic development.
- Furthermore, there are essential synergies by the purchase, states Anders H. Nørgaard, CEO for FirstFarms A/S.
- We have for three years worked on finding the right buyer, and we have now succeeded, states Steen Bitsch, Chairman of the Board in Dan-Farm Holding A/S.
Dan-Farm Holding A/S has through the Hungarian company a pig production with 2,200 sows and a yearly production of approx. 75,000 piglets, of which approx. 5,000 are fattened up to slaughter pigs and the rest is sold.
Synergies by the purchase
For FirstFarms A/S, it has first and foremost been obvious to look at the synergy by the purchase.
- Besides getting the professional management in Dan-Farm into the company, we can also use our corn for feed instead of selling it, as we do now, Anders H. Nørgaard points out.
The approx. 70,000 piglets, which are sold now, can at a later stage also be fattened up in own stables as a part of the further development.
- We want to expand and spread our activities to more areas to become less vulnerable towards fluctuations in the market for the individual operations, he explains.
Steen Bitsch also points to the synergies:
- There are very significant synergies by merging the two companies into one, he states.
It is also the case that FirstFarms A/S has the financial muscles to invest in further development of the pig production, which can now be part of the group.
- However, first a due diligence has to be carried out, says Anders H. Nørgaard.
Further information at FirstFarms A/S, CEO Anders H. Nørgaard on +45 75 86 87 87
FirstFarms A/S is Denmark's only stock exchange listed company with activities in the primary agriculture. FirstFarms A/S was listed in December 2006 and has now approximately 3,000 shareholders and a share capital of DKK 47,122,410. The activities are in agricultural companies and land in Slovakia and Romania. The company operates a total of 16,700 hectares, 2,500 dairy cows and employs 211 employees.
In 2015, FirstFarms A/S realised a turnover of DKK 111.8 million, an EBIT result of DKK -14.7 million and a pre-tax result of DKK -22.5 million. In 2016, FirstFarms A/S expects an EBIT result in the level of DKK 0.
