Evergrain, the specialist international European malting barley trader, has been acquired by the German conglomerate BayWa, which already owns the feed materials trader Cefetra among other businesses.
The BayWa Group, headquartered in Munich, has purchased a majority stake in Evergrain subject to regulatory approvals. Evergrain is registered in Zug, Switzerland although its main trading desk is in Hamburg. It predominantly sources barley from Western Europe, Australia and Argentina for maltster and brewery customers.
Baywa intends to merge its current malting barley activities with Evergrain to form a single unit within the Group. It says the merger will make it a leading international malting barley player within a cereals trading sector that is set to grow to over a million tonnes per annum. While the EU will continue to dominate this trade, there are additional opportunities emerging in the growing South America and Asia markets.
“The new unit will benefit from the Group-wide platform for agricultural trade and logistics,” Klaus Josef Lutz, Baywa chief executive states. “By acquiring a stake in Evergrain, BayWa is expanding its malting barley business on the international stage and will take over a leading role in this specialised trade segment.”
For Baywa, managing partner Andries de Groen adds: “In BayWa, we have a strong partner on board to further develop our international ambitions. Our partners will benefit in the future of improved access to key markets, combined with strong origination expertise.”
Evergrain was established as LT Agro by a former Toepfer malting barley trader in 2009, adopting its present name after the arrival of a new investor in early 2011. The company has recently appointed new traders to drive its presence in the French, Scandinavian and Baltic Sea regional markets.
BayWa is Europe’s largest agricultural co-operative, with a 2014 turnover of €15.2 billion, two thirds of which is generated from agriculture and the rest from supplying energy and building materials. It bought Cefetra, in which ForFarmers had a 57% stake, alongside AgriFirm (32%) and another Dutch co-op, for €125m in October 2012, just after ForFarmers had acquired BOCM Pauls.