Cefetra Ltd, a UK agricultural business trading over 4 million tonnes annually, has announced it has agreed to acquire Premium Crops Ltd subject to satisfaction of completion conditions. Premium Crops is a provider of premium and specialist crops in the UK focusing on high erucic acid rapeseed (HEAR), spring and winter linseed, red wheat, canary seed, millet, and naked oats.
The proposed acquisition of Premium Crops, which follows on from Cefetra’s purchase of Wessex Grain in November 2015, further enhances Cefetra’s capabilities to purchase grains and oilseeds direct from UK farmers, says the company.
Andrew Mackay, Cefetra’s Managing Director, stated: “We will be able to further diversify our portfolio in the speciality markets offering both the farmers in the UK and our customers across Europe an even wider range of products and services.”
The combined business is set to become the “commanding force” in speciality crops in the UK, it states. Andrew Mackay added; “We believe the acquisition of Premium Crops will allow us to add value to the services we can offer to our customers, both growers and end users alike. We are thrilled to partner with a dynamic team that has such a great depth of expertise in speciality crops,” he said.
“We were looking to take the business to the next level,” commented Andrew Probert, Managing Director at Premium Crops. “Negotiations started about 18 months ago, when we were aware that Cefetra were looking to diversify their business. They were the obvious partner, providing access to significantly greater resources, enabling us to offer our growers an unbeatable range of cropping options, outstanding agronomic support and unrivalled access to premium crop contracts, all backed by one of UK agriculture’s strongest businesses.”
The acquisition presents significant new opportunities for growers. “Speciality crops provide growers a way to differentiate their products, adding value whilst reducing their risks” Andrew Probert explained. “Demand for these crops is growing across multiple industries and we believe these premium crops represent a small yet key component of the future of a diversified and specialised arable agricultural market globally. Cefetra will enhance our ability to identify new market opportunities, increase the availability of genetics whilst giving us a greater presence on farm.
“Premium Crops will continue to operate from its existing base, maintaining its name and staff. “On an operational level, we fully expect this change to be invisible for our suppliers and customers,” he added.