Miller Magazine Issue 107 / November 2018

42 MILLER / NOVEMBER 2018 NEWS Al Dahra, a UAE-based international conglomerate, specialising in the agribusiness, has signed an agree- ment to acquire acquiring the assets of PKB Korpora- cija and its subsidiaries in Serbia for $172 million, th- rough an asset sale model transaction. The acquisition is being undertaken as a result of Serbia’s objective to privatise PKB Korporacija, and follows a public tender issued in August 2018, reported Emirates news agency Wam. The operations that will be acquired from PKB Korporacija cover several different agricultural and food sector activities. In terms of farming, Al Dahra will manage and cultivate more than 50,000 acres of farmland, which is spread across eight farms, strategi- cally located at close proximity to Belgrade city centre. The different crops that will be produced include sugar beet 491 hectares; sunflower 2,136 hectares; wheat 3,552 hectares; corn 636 hectares; barley 1,454 he- ctares; soya 2,621 hectares; oilseeds 1,141 hectares; forage 2,322 hectares; silage 2,775 hectares; and a compound of feed and several vegetable varieties. Al Dahra has agreed, as part of the transaction, to invest Euro 30 million over the coming three years to enhan- ce the farms, upgrade the irrigation infrastructure and modernize the dairy operation facilities. However, Al Dahra expects and is willing to invest a further Euro 15 million to optimise the farm and facilities. UAE-based Dahra acquires Serbian group PKB for $172m Serbia signed a contract for the sale of agri- cultural company Poljoprivredna Korporacija Beograd (PKB) to UAE-based Al Dahra Agri- cultural Company. The Andersons, Inc. announced that it has entered into a merger agreement with Lansing Trade Group, LLC, its long-time affiliate, to acquire the 67.5% of Lansing equity that it does not already own for cash and stock currently valued at a total of approximately $305 million. In addition to paying approximately $175 million in cash, the Company will issue unregistered shares to current Lansing equity holders presently valued at ap- proximately $130 million, subject to certain closing ad- justments and changes in the share price of Andersons stock, respectively. The transaction will also result in the consolidation of Thompsons Limited of Ontario, Canada and related entities as they have been jointly owned by Lansing and the Company. The Company will assume approximately $166 million of long-term debt, consisting of up to $130 million from Lansing and about $36 million from Thompsons. The implied purchase price is less than 9 times EBITDA for the twel- ve months ended August 31, 2018. Lansing will be integrated with The Andersons’ Grain Group, and the combined operation will be jointly led by Corey Jorgenson, President of The Andersons Grain Group, and Bill Krueger, President and CEO of Lansing Trade Group. “This acquisition creates a grain business of highly complementary assets with greater scale that significantly expands our reach in the agricultural mar- ketplace,” said Pat Bowe, President and CEO of The Andersons. “We firmly believe the union of these core agricultural businesses will allow us to compete more successfully, provide greater value across an expanded platform, and grow more profitably. The new, larger organization will provide significant career opportuni- ties for our employees,” Bowe continued. Founded in Maumee, Ohio, in 1947, The Andersons is a diversified company rooted in agriculture, con- ducting business across North America in the grain, ethanol, plant nutrient and rail sectors. And Lansing Trade Group is focused on the movement of physical commodities including grains, feed ingredients, energy products, and freight within North America and inter- nationally. The Andersons, Inc. to acquire Lansing Trade Group