Schouw & Co. agrees to sell ownership interest in Kramp for just over DKK 1 billion

Schouw & Co. has agreed to sell its 20% ownership interest in Kramp, the European trading and logistics company, at a price of just over DKK 1 billion. The deal marks the end to 30 years of active ownership that began with the acquisition of Grene in 1988.

Danish industrial conglomerate Schouw & Co. is divesting its portfolio ownership interest in spare parts and accessories to the agricultural sector at a price of EUR 139 million (equal to about DKK 1 billion). The buyer of the shares is the co-shareholder NPM Capital.

“For some time, we had discussed with the other shareholders each party’s preferences for the future ownership structure. During this process it gradually became clear that Schouw & Co. would expectedly not be able to exercise the desired active ownership in the long term. Consequently, we have now agreed on a fair price in return for giving up our shareholding interest,” explains Schouw & Co. CEO Jens Bjerg Sørensen.

Schouw & Co. acquired Grene in 1988. In 2013, the company merged with its long-standing business partner Kramp. Prior to the merger, Grene was the market leading agro-wholesaler in the Nordics, Poland and the Baltics, generating 2012 revenue of DKK 1.35 billion. Kramp was the market leader in large parts of central and southern Europe, with 2012 revenue of DKK 3.1 billion. The merger created Europe’s largest agro-wholesaler:

“The merger of Grene and Kramp in 2013 has been a huge success. Despite the many obvious challenges facing European agriculture, revenue grew to DKK 5.1 billion last year with EBIT climbing to DKK 474 million,” says Mr Bjerg Sørensen. “After three years of implementing the merger and harvesting synergies, the company is now poised for a new phase of growth, and this is an appropriate time for us to exit.

The transaction values Kramp at about 14.5x the guided FY 2016 EBIT, reflecting the company’s huge potential. Priced at more than DKK 400 million higher than the carrying amount of the shares, the transaction price will significantly increase Schouw & Co.’s profit for 2016.

“Given the period of almost 30 years that we’ve been involved in providing spare parts for agriculture, the deal gives us an average annualised rate of return of 15%. In other words, Schouw & Co. and Grene have been an extremely good team over the years,” says Mr Bjerg Sørensen. “Our core strength lies in such a long-term, active ownership and in working closely with the portfolio company management to grow the top and bottom lines.”

Schouw & Co. has stepped up new investments in recent years, making portfolio acquisitions in both existing and new industries. According to Mr Bjerg Sørensen, this is a trend that will continue: “We are constantly considering new acquisition opportunities, be they bolt-on acquisitions for our existing portfolio companies or moves into new industries.

The sale of the shares will be effected with due consideration for the shareholder agreement concluded by the owners, and the deal is expected to close in 2016. The practical process and timing of events has yet to be clarified.

For further information, please contact:

  • Jens Bjerg Sørensen, President, Schouw & Co., tel. +45 86 11 22 22

About Schouw & Co.

Schouw & Co. is one of Denmark’s largest industrial conglomerates with projected full-year 2016 consolidated revenue of DKK 14.1 billion and EBIT in the DKK 845-935 million range. The group is known first and foremost for its long-term, active ownership of its portfolio companies.

Schouw & Co.’s portfolio consists of the following companies:

  • BioMar (wholly owned): the world’s third-largest manufacturer of quality feed for the fish farming industry;
  • Fibertex Personal Care (wholly owned): one of the world’s five largest manufacturers of spunbond/spunmelt nonwovens for the personal care industry;
  • Fibertex Nonwovens (wholly owned): a leading European manufacturer of nonwovens for industrial applications;
  • Hydra-Grene (wholly owned): the leading supplier of hydraulics for industry and one of the world’s leading suppliers to the wind industry;
  • GPV (wholly owned): Denmark’s largest EMS  company and supplier of electronics and advanced mechanics;
  • Xergi (50%-owned): one of Europe's leading suppliers of turnkey biogas systems; and
  • Incuba Invest (49%-owned): Danish-based development and venture operation.