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Machinery investment i Finland and the Baltic countries

06/07/2018

Exclusive CLAAS dealership in Finland, Estonia, Latvia and Lithuania

Danish Agro has signed a deal with the Finnish company Kesko regarding the acquisition of the remaining 55 % of the shareholding in its three machinery companies AS Konekesko Eesti, SIA Konekesko Latvija and UAB Konekesko Lietuva as of 1 October 2018. At the same time, Danish Agro will take over Keskos Finnish machinery activities, where they are exclusive dealers for the CLAAS product range. Danish Agro acquired the first 45 % shareholding in the Baltic countries in February 2017 in a deal with an option of taking over the remaining shares and the activities in Finland, which is being executed now.
 
The three Baltic companies have around 260 people employed with a total of 13 branches, including stocks of spare parts and service facilities. Total turnover in 2017 was 134 mio. EUR with an operating profit of 4.8 mio. EUR. The turnover of the acquired Finnish activities are about 30 mio. EUR per year with approx. 40 employees. 
 
Group CEO in Danish Agro, Henning Haahr is very satisfied with the deal: 
 
"We have been very satisfied with the three Baltic machinery companies since our investment 1,5 years ago. It has therefore not been a difficult decision to acquire the remaining shares. At the same time, we believe we utilize big synergies by taking over Keskos Finnish machinery activities now. This means that we, as of 1. October, will be represented by CLAAS machinery sales in Scandinavia, Finland and the Baltic countries. With strong agribusiness companies and machinery activities in Finland and the Baltic countries we now have gained a very strong market position as a partner to the Finnish and Baltic farmers," he says.
 
CEO in the Danish Agro machinery division, Jens Skifter, see a great potential in the Baltic countries and Finland. 
 
- We enjoy an excellent, trustful relationship with CLAAS, and we see plenty of potential and synergies in acquiring the remaining share in the Baltic countries, as we will be fully represented with CLAAS in seven countries. We can create many benefits for the farmers we do business with within service, spare parts, used machinery sales, etc., he says.
 
Since many years, Danish Agro have had a close collaboration within machinery activities with John Deere in Finland and since some years also in  Estonia. These activities will not be affected by above deal. 
 
The acquisition of the shares in the Baltic companies and the future acquisition of the Finnish machinery activities is depending on approval from the relevant competition authorities.