Royal Reesink acquires Lely Turfcare

Netherlands-based holdings company Royal Reesink has today completed the acquisition of the turfcare activities of Lely Holding ("Lely") in the UK, Ireland and Denmark.

Reesink CEO Gerrit van der Scheer, left, with Lely Holding CEO Alexander van der Lely. Image: Supplied
Reesink CEO Gerrit van der Scheer, left, with Lely Holding CEO Alexander van der Lely. Image: Supplied

Royal Reesink will take over the distribution of Toro machines for gold course and green spaces maintenance as well as TYM compact tractors, which overall generated revenue of some €60m in 2015, with around 125 employees. Revenue has grown in the first half of 2016.

Lely signalled its intent to become part of Reesink earlier this year when it split its agricultural and turfcare business in two.

Royal Reesink chief executive Gerrit van der Scheer said: "This acquisition adds the UK, Ireland and Denmark to the geographical spread of our activities and strengthens our position in the market for machines for the maintenance of golf courses and of public green spaces (turfcare).

"Going forward, the activities will continue under the name Reesink Turfcare."

Lely chief executive Alexander van der Lely said: "The sale of our turfcare activities in the UK, Ireland and Denmark is another step in our strategy of focusing exclusively on our core activity, milking systems and raw feed production. The distribution of Toro machines and TYM compact tractors is in good hands at Royal Reesink."

The purchase price will be financed by an increase in bank financing from €170m - €185m, as well as a subordinated loan to Royal Reesink that will be provided by River Acquisition B.V..

Royal Reesink already handles the distribution of Toro machines in the "Benelux" (Belgium, the Netherlands and Luxembourg) through its subsidiaries Jean Heybroek and Packo. The products are supplied either directly or through dealers to farmers, contractors, green area companies, golf courses, municipalities, government bodies, water boards, and foresters.

Until now, these activities took place largely in the Benelux and from now on they will also be carried out in the UK, Ireland and Denmark. This acquisition will strengthen Royal Reesink's turfcare activities in countries with large turfcare markets.

Royal Reesink says it has achieved increases in both market share and total revenue of its turfcare activities in the past few years and is confident that its approach will also be successful in the new geographical markets. Together with the current management and employees, it will work on expanding the product range in the UK, Ireland and Denmark with brands already carried by Royal Reesink.

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