Investment Opportunity: A German Agribusiness & Renewable Energy Company requires around EUR21mn for expanding its Wind Energy division.
• The Company was established in the 1800s in Germany with the fifth generation currently running the business.
• The Company has several business lines: cultivating and growing cereals for consumer food and animal feed, and biomass for biomass plants. The Company also operates 2 windmills and a biogas plant. It has around 825ha of arable land. The Company also deals with developing, leasing and trading in land for renewable energy projects, in addition to livestock feeding and husbandry.
• In the last 3 years, Agribusiness Revenues increased by 50% and NI was multiplied by 5x.
• With the introduction of a bio-gas plant during 2013, Revenues increased by more than 300% for the period ending June-2013.
• The Company’s land altitude and terrain is optimal for erecting windmills, noting that land is still cheaply available in their surrounding areas.
• Transaction is to raise around EUR23mn, of which Client is willing to contribute EUR 2mn, besides the assets that are contributed to date with a book value of around EUR 19mn.
• Uses of Funds: Purchase of 8 windmills.
• The Project has an IRR of 20% and annual revenues of around EUR 5mn with an average net profit margin of 25%.
• Investor’s return: Company will offer a 6% guaranteed return, in addition to 15% of the net income OR offer equity share in the company.
The Information Memorandum may be disclosed upon signing an NDA.