Big investment for Romania's DN Agrar Group
DN Agrar, a Dutch-held group of firms operating in the fields of animal husbandry, farm production, farming services, logistics, transportation, tourism and advisory services, has attracted RON24.8 million from investors that hold 25.7% of the share capital, following a private placement of shares.
The share offering was brokered by BRK Financial Group, as authorized consultant. The next step is to list the company’s shares on the alternative trading system AeRO market of the Bucharest Stock Exchange, in mid-September 2021, under the ticker symbol DN.
Jan Gijsbertus de Boer, general manager and shareholder of DN Agrar companies from 2008 until present, controls, via Dutch company AM Advies BV, the difference of 74.3% of the share capital of DN Agrar Group.
Of roughly EUR5 million raised through the private placement, DN Agrar Group fully acquired Lacto Agrar, a company which had 16-18 investors, among which investment funds, via a transaction worth EUR4.3 million, with the remainder being at the company’s disposal for current expenses. The acquisition deal is still pending approval from Romania’s Competition Council.
Lacto Agrar SRL, located in Hunedoara County, currently has 3,500 cattle and 1,749 hectares of land, of which 1,445 hectares are being worked. DN Agrar aims to reach the largest compound of cattle farms for milk production in Romania until the end of 2021, targeting 130,000 liters of milk produced daily. DN Agrar group of firms was established in Romania in 2008, with the opening of the first member companies – DN Agrar Group SA and DN Agrar Cut SRL. Companies DN Agrar Trading SRL, DN Agrar Service SRL, DN Agrar Prodlact SRL, DN Farm Concept SRL, DN Agrar Straja SRL, DN Agrar Bio SRL, DN Agrar Greenfield SRL, DN Agrar Logistics SRL and Pensiunea Casa Buna SRL were subsequently established.
DN Agrar Group had a net profit of RON5.5 million in 2020, up 65% compared with 2019, and a turnover of RON38.2 million, up 4.2% on the year. In 2020, the Group’s debts totaled RON50.7 million. The Group has on average 162 employees.
For 2021, after the acquisition of the Lacto Agrar farm, the Group expects a net profit of RON9.2 million and a turnover of RON78 million.
Source: ZFEnglish, 2021
