Danish Agro’s subisdiary Baltic Agro Latvia has concluded a deal to acquire 60 percent of the shares in agribusiness company Tukuma Straume, which also produces pet food.
Tukuma Straume is based in Tukums, close to Riga, Latvia. Part of the deal includes acquisition of the remaining 40 percent of the shares at a later date.
The company has 85 employees and is active within traditional agribusiness, animal feed production and grain intake, along with a specialty factory producing feed for livestock and pets. It has total warehouse capacity for ingredients of 45,000 tons, and 100,000 tons of grain storage capacity. The grain facilities are located in Tukums, handy for exporting from Riga’s harbor, and in the southeast of the country at Daugavpils.
Statements by company officials
“We are highly satisfied with the deal struck with Tukuma Straume, which will supplement our current activities and open up new opportunities for trading with Latvian farmers. The acquisition gives us increased presence on the market, a more flexible setup and boosts feed production capacity by no less than 46,000 tons,” said Henning Haahr, group CEO of Danish Agro.
“It also gives us the opportunity to strengthen our position within our own pet food production in Latvia and the group’s other subsidiaries. We currently have around 100 retail outlets for hobby and outdoor enthusiasts which stock pet foods. The expertise and production capacity we now gain in Latvia will be make a big difference here,” Haahr said.
The acquisition makes several synergies possible across the group’s subsidiaries, as Tukuma Straume is in the same area as a number the group’s other member companies, and neighbor to the premix and vitamin business, Vilomix Baltic.
The sale is contingent on approval from the Latvian authorities.
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