Today the Belgium company Greenyard has signed a share purchase agreement with Belgium investment fund Straco to sell its Horticulture segment for EUR 120 million. The horticultural segment is known for its growbags, primarily sold under the Peltracom brand. Greenyard has been under pressure after this summers' harsh weather circumstances and a Listeria breakout earlier this year.
Eventful times continue for the Greenyard Group. The group is one of the biggest in Europe's fresh trade industry, active both in fresh trade, in the processing of fruit and vegetables into frozen and prepared food products and in the production of substrates.
With his private firms, chairman Hein Deprez also owns several fruit and vegetable nurseries. "Closing the chain of fresh produce", is what has been top of his mind for years. But this year he has to adjust his plans. Greenyards's results have been put under pressure due to the combination of the recall action, the dry weather and the persistently challenging market in Northwestern Europe. The profit forecast of Greenyard Group has been adjusted, the companies debt ratio is too high and now the bank intervenes.
The entire Horticulture segment, including Horticulture and Mycoculture, is sold to Straco. The deal is expected to be fully closed in the last quarter of accounting year 2018/2019.
"Straco is a family owned reputable Belgian investor with a long-term investment horizon that wants to invest in the further future growth of the Horticulture group. We expect that this announcement will not have any impact on the day-to-day business and the horticulture employees", Greenyard Group states in a press release.
The Horticulture department of Greenyard noted a considerable increase in sales in the first six months of this year. These were up 35% compared to the previous year. This division's turnover came to EUR34.4 million. There has been an especially sharp climb in the sales of potting soil and bark to Belgian retailers and Polish professional customers. The takeover of Mycoculture also contributed to the growth within this sector's activities.
Straco is an independent Belgian investment group active in real estate project development, real estate investments and private equity. "We currently operate in the Benelux, UK, France, Germany and Poland, but are always looking for global opportunities in various industries", they say about themselves.