Royal Reesink N.V. (“Royal Reesink”) has completed the acquisition of the turfcare activities of Lely Holding S.ár.l (“Lely”) in the UK, Ireland and Denmark. These activities mainly comprise the distribution of Toro machines for the maintenance of golf courses and public green spaces and TYM compact tractors (UK, IRE). These activities generated revenue of some €60 million in 2015, with around 125 employees. Revenue has grown in the first half of 2016.
Gerrit van der Scheer, CEO of Royal Reesink, commented: “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.”
Alexander van der Lely, CEO of Lely Holding, 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 EUR 170 million to EUR 185 million 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 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 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.