Press release issued on behalf of Axéréal :

French co-operative group, Axéréal, has entered into a conditional agreement to acquire the malting business of Greencore Group plc

- Acquisition will create 5th largest global malt business in Boortmalt Group

Thursday, 11 February, 2010 – French co-operative group, Axéréal, has today (Thursday) announced that it has reached agreement with Greencore Group plc to acquire its malting business, Greencore Malt, through its malting business, Boortmalt Group.

The completion of this agreement is conditional upon the approval of the shareholders of Greencore Group plc.
This acquisition will establish Axéréal’s malting business, Boortmalt Group, as the world’s 5th largest malting business, and the third largest in Europe, with a production capacity of over 1.1 million tonnes of malt. The Group will have malting plants in 11 European locations, and a strong presence in key markets including South and Central America, Africa, Asia and Europe.

Boortmalt Group is currently the 7th largest maltster worldwide producing 620,000 tons of malt annually. Greencore Malt produces 520,000 tonnes and is ranked the world’s 9th largest maltster. Boortmalt Group has the largest malting plant in Europe located in Antwerp with a production capacity of 320,000 per year.

Commenting on today’s announcement, Axéréal Chief Executive Officer, Dominique Bamas, said:
“As a major farmer-owned co-operative group, Axéréal’s strategy is to invest in, and develop, quality downstream grain businesses that help ensure the proper functioning of competitive markets for cereals. We seek to build strong positions for each of our processing businesses to create influential players on a global stage, which deliver quality products, innovation and service to our customers. Our acquisition of Greencore Malt will be a significant step in delivering on this strategy and establishes Boortmalt as a leading player in the global malt business.”

Headquartered in Antwerp, Belgium, the Boortmalt Group is led by CEO, Yvan Schaepman. Following the deal, he will be supported by David Wilkes, the current CEO of Greencore Malt, who will join Boortmalt as its Deputy CEO.

Commenting on today’s announcement, Yvan Schaepman, said: “Our affiliation to Axéréal is our core strength, giving us access and influence on all stages of the barley supply chain (from certified seed to distribution and dispatch of the crop), helping us to ensure quality and traceability of our products, and to drive innovation to meet the changing needs of our customers and the market.

This acquisition helps us build on the strong relationships we have with our suppliers and our customers through an excellent network of modern malting plants and a broader international presence. This acquisition will help us expand our offer to customers with a range of services and products, including malt diversification, in particular with special and peated malts for brewers, distillers and food manufacturers.”

“I look forward to welcoming Greencore Malt into the Boortmalt Group. The combination of our two businesses creates a very strong group with a compelling offer for our customers. We are very complementary,” he said.

Post acquisition, the Boortmalt Group will have 11 malting plants in Europe: Antwerp, Ghlin and Gembloux in Belgium, Issoudun in France, Knapton and Bury St. Edmonds in England, Athy in Ireland, Glenesk and Buckie in Scotland, Dunaujvaros in Hungary and Nova Gradiska in Croatia.

Rooted in the grain producing Centre region of France, Axéréal is a major agri co-operative group formed in July 2009 from the merger the two French co-operative unions, Agralys and Epis-Centre. Axéréal purchases 5 million tonnes of cereals annually and trades 8 million tonnes. The co-operative Group has 13,000 farmer members, 3,500 employees and revenues of €2.8 billion. Its trading activities focus on three areas covering the key links in the international grain supply chain, namely Grain (seed supply, farm advisory, collection, marketing), European trade (purchase and sale of grain, and logistical services), Processing (malting, flour milling, animal feeds, oilseed crushing and bioethanol production).

Deal adviser to Axéréal: Banque Hottinguer, NCB, CIC Finance

Ends

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