Stockholm / SE. (lg) In May, Sweden’s Lantmännen reported that it intends to acquire the Finnish company Raisioagro. Now that the transaction has been completed, Lantmännen takes a big step into the Finnish feed market, and strengthens its presence as a leading player in agribusiness in Finland.
In May, Lantmännen announced that it intended to acquire Raisio’s cattle feed business including two feed factories and sales of inputs for plant cultivation (in the company Raisioagro). The acquisition has been investigated by the relevant competition authorities and was approved, which means that the company Raisioagro is now a part of Lantmännen.
Raisioagro is an important player on the Finnish agricultural market, with sales (in 2017) of Euro 74 million. By acquiring Raisioagro Lantmännen is able to broaden its offer in Finland, and strengthens its presence as a leading player in agribusiness on the Finnish market.
«Raisioagro is a well-functioning business with good relationships with its customers and suppliers. Lantmännen will continue to operate the business in its current form. Once the integration has been completed, we will develop the business with the goal of turning the company into an even more competitive trading partner in Finnish agriculture,» says Peter Annas, Chairman of the Board at Raisioagro and Head of Plant Cultivation at Lantmännen Lantbruk.
«We are pleased that the acquisition has now been completed and welcome our new owner Lantmännen. We believe that Lantmännen, with its focus on agricultural operations, will manage and develop Raisioagro into an even more attractive player on the Finnish market,» says Mikko Korhonen, CEO-elect at Raisioagro.
Lantmännen already has an established agricultural store in Finland through the company Lantmännen Agro Oy, with independent dealers throughout the country. In Lantmännen Agro, Lantmännen mainly conducts trade in grain and the sale of inputs for plant cultivation, as well as accessories and spare parts for agricultural machinery.
«The feed business in Raisioagro complements our offer to the Finnish farmer. We expect to find synergies between the feed business and Lantmännen Agro but, above all, it means that we can offer a broader range on the market and that we can operate as a turnkey supplier to Finnish farmers,» says Elisabeth Ringdahl, Head of Agriculture Sector, Lantmännen Lantbruk.
The acquisition includes around 70 employees. In addition to its principal business, feed production, Raisioagro pursues research and development into animal feed and is at the forefront of the digitalisation of agricultural services. The company will initially operate under the company name Raisioagro.