Press release
DLG Group sells Grass and Soil activities of Kongskilde Industries to CNH Industrial
· DLG Group (DLG a.m.b.a) has entered into an agreement to sell the Grass and Soil activities of Kongskilde, while keeping Kongskilde's Industry and Grain divisions · The transaction is yet another step in DLG's strategy to focus on its core business
Today, DLG Group (DLG a.m.b.a.) has entered into an agreement to sell the Grass and Soil activities of Kongskilde Industries to CNH Industrial N.V. With the transaction, the DLG Group continues to follow its strategy to divest non-core activities and strengthen the focus on its three core business areas.
The divestment also gives DLG and Kongskilde the opportunity for an even stronger focus on developing the two other divisions at Kongskilde, Kongskilde Industry and Kongskilde Grain, which continue under DLG's ownership.
"This transaction represents a milestone in our targeted process towards creating a leaner and more focused DLG. We are pleased to have found a new owner that will continue to service Kongskilde customers and end-users, while developing the business further. The transaction will also enable DLG to develop Kongskilde Industry and Kongskilde Grain even further," said Mr Kim Balle, Chairman of Kongskilde and COO of DLG Group.
The transaction comprises a transfer of assets and brands related to the Grass and Soil activities of Kongskilde Industries, including all of the Grass and Soil production activities in Kutno, Poland, Överum, Sweden, a lease contract of production activities in Hudson, Illinois, North America, and other facilities in the EMEA, APAC and NAFTA regions. The transaction is subject to customary closing conditions, including approval from relevant antitrust authorities.
CNH Industrial's global network and expertise in the agriculture sector will provide growth opportunities and benefit for the Grass and Soil activities of Kongskilde Industries, ensuring that the Grass and Soil activities of Kongskilde will benefit from synergies generated under CNH Industrial's ownership. The acquisition will in turn expand the agricultural machinery portfolio of New Holland Agriculture, a brand of CNH Industrial.
The acquisition of the Grass and Soil activities of Kongskilde Industries marks the addition of a key product portfolio and production platform that will further broaden New Holland Agriculture's product offering and production capabilities within agricultural machinery. Further, the acquisition underlines New Holland's commitment to the agricultural industry and provides a strong platform to grow the Grass and Soil business of Kongskilde through both the current and independent dealer network and utilize CNH Industrial's industrial expertise and worldwide distribution network.
Advisors
Nordea acts as financial advisor and Bruun & Hjejle acts as legal advisor to DLG.
CNH Industrial N.V.
CNH Industrial is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions.
Kongskilde Industries A/S
Headquartered in Sorø, Denmark, Kongskilde is a leading provider for system solutions for the industry and agriculture. Its Industry Division comprises solutions for the plastic, paper and packaging industries, including specialized in concepts for pneumatical transport and handling of process material. For the agricultural sector, Kongskilde is well-known for its solutions in the transportation, drying, storage and sorting of grain and other crops as well as systems for drying big bales. In addition, Kongskilde offers a comprehensive range of mobile heaters for drying and heating in the agricultural, construction and industrial sectors.
The DLG Group
The DLG Group is owned by Danish farmers and is one of the largest agricultural companies in Europe with approx. 7,400 employees and activities in more than 20 countries. The Group's primary business areas are farm supply, premix & nutrition, and energy, supplying farmers with feed from its own factories, seed grain, fertilizer, agricultural lime, crop protection, vitamins and minerals for animal feed as well as fuel for daily operations. In addition, the DLG Group is one of Europe's biggest exporters of seed, feed and milling grain, malting barley and oilseed rape.
Media contact:
Jes Randrup Nielsen, Head of Group Communications, DLG Group: +45 4219 0535; jesr@dlg.dk
