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Dutch Acomo buys Deli´s tea, seeds businesses
Tuesday 11 May 2010

Dutch agricultural products trader Amsterdam Commodities (AMS:ACOMO) announced today an agreement to buy the tea and seeds activities of Amsterdam-based trading and distribution company NV Deli Maatschappij for some EUR100m (USD127.4m), including about EUR20m in debt.

The takeover price consists of EUR67.5m in cash, EUR8m in shares and EUR5m in the form of a convertible loan.

The businesses Acomo is buying -- Rotterdam-based Van Rees Group and US Red River Group -- will enable it to double in size and gain a leading market position in tea and seeds trading.

The two companies employ about 450 in total and have a combined net profit of EUR13.5m. Acomo posted last year a profit of EUR10.5m.

Van Rees Group is the world´s biggest independent tea trader with facilities in ten countries across Europe, Africa, Asia and North America. The company generated last year a revenue of USD182m.

Red River Group is a major player in the global trade, cleaning, processing and distribution of confectionery sunflower, caraway and poppy seeds. The company´s revenue amounted to USD145m in 2009. Red River operates production sites in North Dakota, Kansas and Texas.
Details
Date Published: 11/05/2010
Target: The Red River Group, Van Rees Group
Country: USA, Netherlands
Deal Size: 127.4m (USD)
Sector: Agriculture/Forestry, Food/Beverages/Tobacco
Type: Corporate acquisition
Financing: Cash & Stock, Debt
Status: Agreed
Vendor: NV Deli Maatschappij
Buyer: Amsterdam Commodities NV

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