DLG Group strengthens its position in Germany with merger of companies

The agricultural company Hauptgenossenschaft Nord AG (HaGe) and the energy and heavy building material business Team SE (Team) are now joining forces in one unified company with a focus on the agricultural industry as well as the heavy building material and energy sector. The merger comes after several years of close cooperation between the two companies and forms the starting point for building an efficient, future-oriented, and modern company with a potential for future growth.

“Germany is a strategically important market for DLG, and with the merger of HaGe and Team into one company, we will be in a strong position in the very competitive German market. Team and HaGe are each strong players in their respective business areas. Together, they have the power to expand our market-leading position in Germany and explore new business opportunities,” says Kristian Hundebøll, Group CEO of the DLG Group.

The merger will create one of the largest companies with headquarters in Schleswig-Holstein, which will employ almost 5,000 people, a revenue of EUR 4.7 billion and generate an operating profit (EBITDA) of more than EUR 130 million.

“DLG is a company with solid Danish roots, but a large part of our revenue and earnings are generated outside the country's borders and in particular in Germany. With the merger between HaGe and Team, we create an even better starting point for generating further earnings growth in the German market, which today contributes two-thirds of the DLG Group's total earnings,” says Kristian Hundebøll.

The new company will be headquartered in Flensburg, where Team is building a new domicile suitable for 380 employees. The new headquarter is just a one hour's drive from the DLG Group's domicile in Fredericia.

Kevin Lorenzen (CEO, Team) and Henrik Madsen (CEO, HaGe) will form the Executive Management Board of the new company together with Carsten Gemeinhardt (COO, Team) and Lars Sørensen (CFO, HaGe).

The merger must be approved at an extraordinary general meeting in Team before the end of the year and will take effect from January 2022.

Facts about HaGe

HaGe is one of the largest agricultural companies in Germany with a revenue of EUR 2.2 billion in 2020 and approx. 1,400 employees. HaGe sells agricultural products directly to agricultural customers in Schleswig-Holstein, Mecklenburg-Vorpommern and the eastern German federal states. In wholesale, HaGe serves the entire German market with fertilizers, plant protection products and seeds through its subsidiary BSL. HaGe sold a total of 4.7 million tonnes of grain and rapeseed last year and delivers i.a. to the processing industry in Germany and Europe as well as to international export via own port facilities in Hamburg, Rostock and Kiel.

Facts about Team

Team SE employs more than 3,500 employees at more than 300 locations and in 2020 they had a revenue of EUR 2.1 billion. Team operates within the heavy building material and energy sector. The activities in the heavy building material division focus on trading for construction companies. The activities in the energy sector consist of trade in mineral oil and energy, trade in electricity and gas, lubricants and filling stations. Team is also in the process of opening a number of hydrogen refueling stations.