CZAV subsidiary Pauwels on acquisition path

The Belgian supplier Luc Pauwels NV, in which CZAV has a majority interest, is taking over the activities of Agro Vangeel. This creates a company with a turnover of €43 million.

From Tuesday 22 August, the agricultural and horticultural activities of Agro Vangeel from Turnhout, and all employees and depots, will be in the hands of Luc Pauwels. The current management and current shareholders will then step down.

Tino Pauwels will bear ultimate responsibility for the entire company. Veronique van Geldorp will be responsible for the Turnhout location. In 2009 the Dutch agricultural cooperative CZAV acquired a 70% interest in Pauwels. Deputy director Ko Francke about the new acquisition.

Why is Vangeel an interesting takeover fodder for Pauwels?
"Agro Vangeel has a turnover of €9 million, Pauwels at €34 million. Added together, this comes to a turnover of €43 million. We see strong expansion opportunities on the east side of Antwerp, which means that we now have a strong presence throughout Flanders. Pauwels is a reliable solid company that will not take steps that are difficult to manage."

To what extent is it necessary to adjust the business strategy?
"Together with the cooperative SCAM (Wallonia) under the name Demeterra, we offer economies of scale in Belgium. Now even more visible than before the takeover. We are sticking to our tactic of staying close to the farmers. The expansion makes us more attractive for the industry by playing a role in innovations and knowledge development. The collaboration with Demeterra can be compared with the working method we have in the Netherlands with Crop Solutions; an important source of knowledge for our members and customers. Demeterra is one of the 3 largest parties in the Belgian market."

Can we expect a name change?
"No, Pauwels will continue to be called that. That is the brand in the Flemish and Belgian market. But the name Agro Vangeel will disappear and we will no longer use it in the Belgian market. The team of advisors from pauwels will be expanded and things will be adjusted in management and control to properly manage this step."

No sites are being divested?
"Certainly not. Due to the traffic problems in Antwerp, the Turnhout location will continue to exist as a distribution center. Turnhout is simply an important location."

What will the CZAV members gain from the takeover on Belgian territory?
"By purchasing jointly we can make a bigger fist and improve prices and purchasing conditions. Being able to bring in a larger volume will certainly be an advantage. The members of our cooperative benefit from the larger market area, because the costs per unit are reduced. That is good for our competitiveness. The Belgian market is different in terms of knowledge. The government is doing more and there are many research institutes that generate a lot of knowledge about soil, fertilization and sustainable cultivation. Our advisors and customers can benefit from this ."

CZAV has a 70% interest in Luc Pauwels. Will that ever be more?
"Never say never. The step that has now been taken is not a reason or reason to change the share ratio, but our current share has made the acquisition possible."

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