AGCO Corp to buy Cimbria from Silverfleet Capital

Silverfleet Capital has agreed to sell Cimbria, a Danish maker of equipment and processing lines for seed and grain, to AGCO Corp. The price of the transaction is about 310 million euros (about $344 million).


Silverfleet Capital, the European private equity firm, has agreed the sale of Cimbria, a Danish-headquartered manufacturer of equipment and processing lines for seed and grain, to AGCO Corporation (NYSE:AGCO) for approximately €310 million.

Cimbria, headquartered in Thisted in Denmark, is a leading global manufacturer of equipment used for seed processing and post-harvest grain handling. It has four production facilities in Denmark, Austria, the Czech Republic and Italy, and employs approximately 900 people globally.

Silverfleet acquired Cimbria in April 2013 having identified the potential to build an international leader of scale in the seed and grain-processing sector. Silverfleet recognised that Cimbria’s products are well placed to serve the need for greater agricultural productivity that the expanding global demand for grain and other crops requires.

Under its ownership, Silverfleet has led an ambitious expansion strategy, which has generated substantial growth in revenue and profits. Cimbria has expanded into high growth markets of grain-and seed-importing countries such as Egypt and other Middle Eastern countries, whilst previously it was predominantly focused on exporting countries. It also expanded its sales operations to cover after-sales. Operationally, Cimbria strengthened the senior management team with a number of new appointments including in its R&D, procurement and after-sales functions. In addition it improved its manufacturing efficiency, which included the opening of a new plant in the Czech Republic.

Gareth Whiley, Partner at Silverfleet Capital who served on the Cimbria Board and has responsibility for the Nordic region, commented: “We are delighted with the substantial growth achieved in conjunction with the management team at Cimbria. It supports our investment thesis of capitalising on long-term growth trends in the food and agricultural manufacturing sectors and investing in winning companies.”

Søren Overgaard, Group CEO of Cimbria, said: “Thanks to Silverfleet’s financial support and strategic insight, Cimbria has undergone a rapid transformation over the past few years. We are well placed to continue growing our market share under our new owners, AGCO.”
Silverfleet Capital has a successful track record of investing in European-headquartered international businesses and within the food sector has recently announced an agreement to sell Kalle GmbH, a world-leading manufacturer of artificial casings for meat products, for an investment return of 3.5x. Silverfleet is also an experienced investor in the Nordic region and retains an investment in two other Danish companies.

Silverfleet was advised by Baird (corporate finance), Travers Smith and Accura (legal), Deloitte (financial and tax due diligence) and Roland Berger (commercial due diligence).

About Silverfleet Capital
Silverfleet Capital has been an active European mid-market private equity investor for 30 years. The investment team of 24 executives is based in offices in London, Paris and Munich and currently manages around €1.6 billion. Silverfleet Capital’s second independent fund closed in 2015 with commitments of €870 million. Since its close has announced investments in The Masai Clothing Company, a Danish headquartered business, Coventya, a French headquartered business, and Sigma, a UK precision components manufacturer focusing on the aerospace industry.

Silverfleet Capital seeks to create value through its “buy to build” investment strategy. This means working closely with companies to accelerate their growth through investment in new products, production capacity or people, or through rolling out successful retail formats or through making follow-on acquisitions. Since 2004 Silverfleet Capital has invested €1.4 billion in 21 companies that have completed around 70 acquisitions and opened around 160 new points of sale.

Silverfleet invests primarily in 4 sectors: business and financial services; healthcare; manufacturing; and retail, leisure and consumer goods. Since 2004 32% of new investments, by value have been in companies with headquarters in the DACH region, 26% based in the UK, 25% in the Nordic Region and 17% in France, the Benelux region and elsewhere in the world.

Within the Nordic region, the firm’s previous investments include Phadia, an allergy diagnostics company based in Uppsala, Sweden; Finnish Chemicals, a bleaching chemicals business headquartered in Äetsä, Finland; AGR, the world’s largest independent provider of oil and gas well management services based in Oslo, Norway; Masai Clothing Company, the international wholesaler and retailer of women’s fashion headquartered in Copenhagen, Denmark; and Phase One, the world’s leading brand in high-end medium format digital camera systems and image processing software headquartered in Copenhagen, Denmark.
Silverfleet Capital has a consistently strong investment track record. Most recently Silverfleet announced the exit of Kalle, a German artificial casings manufacturer (3.5x cost) and it also successfully exited OFFICE, the UK shoe retailer (3.4x cost). Other notable exits include Aesica, the leading pharmaceutical CDMO business (3.3x cost), Sterigenics International Inc., the world’s leading medical device sterilization company*; Histoire d’Or, the European jewellery retailer (3.2x cost); TMF, the global independent administrators (6.1x cost) and Phadia, the world’s leading allergy diagnostics company (4.8x cost).

*Money multiple not disclosed for legal reasons

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About Cimbria
Cimbria, headquartered in Thisted in Denmark, is a leading global manufacturer of equipment used for seed processing and post-harvest grain handling. The company, which was founded in 1947, has a long-standing reputation and leadership in sorting technology and today is the global leader in seed processing equipment and the second largest provider of grain handling equipment in EMEA.

Cimbria’s products include equipment for cleaning, drying and storing grain and seed, as well as conveyors linking equipment in a handling or processing line. Its products range from standalone equipment pieces to large custom built project installations. The company has an international customer base and has installed over 60,000 units in over 100 countries. For the year ending 30 September 2015, total sales amounted to DKK 1.3 billion (€175 million). Cimbria operates production facilities in four countries: Denmark, Austria, the Czech Republic and Italy, and today has approximately 900 employees.