FirstFarms A/S expands the portfolio with larger pig production

FirstFarms A/S has today entered a conditional agreement about purchase of Tjekkiet Invest A/S. Tjekkiet Invest A/S owns 100 percent of the Czech company, Granero Vlasatice s.r.o., which includes both crop and pig production in the Czech Republic.

The production of slaughter pigs is divided on two different sites with a total production of 72,000 slaughter pigs per year.

The production plants are of high quality, and the production results are satisfactory.

The production foundation for the crop production is 1,150 hectares, of which 916 hectares are owned, in a varied crop rotation consisting of grain and rape.

The purchase price is agreed to DKK 59.7 million for 100% of the share capital in Tjekkiet Invest A/S. The purchase price is expected to be paid with issuance of shares in FirstFarms A/S with DKK 19.9 million at price 49.21, corresponding to fair value, issuance of DKK 19.9 million in convertible bonds and DKK 19.9 million in cash.

The purchase of Tjekkiet Invest A/S is in 2018 expected to influence FirstFarms A/S' accounts to a smaller extent, as the take-over is not expected to have influence before Q3, 2018. A positive effect of EBITDA of DKK 4-5 million is expected and an EBIT of DKK 1-2 million in 2018.

A due diligence process will be initiated, before the agreement is final.

Anders H. Nørgaard says: With the purchase of Tjekkiet Invest A/S, we are strengthening an ambitious growth strategy in sustainable agricultural production in Eastern Europe. We also expect significant synergies related to FirstFarms' pig production in Hungary and crop production in Slovakia.

Finally, Anders H. Nørgaard says: The agricultural production in Eastern Europe is in a good development. The price of land is increasing and the demand for pork is large.

Best regards,
FirstFarms A/S

For further information:
Please visit our website www.firstfarms.com or
contact CEO Anders H. Nørgaard on telephone +45 75 86 87 87.

(3) FF expands the portfolio with larger pig production (UK)


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Source: FirstFarms A/S via Globenewswire

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