NEW YORK, Oct. 11, 2019 (GLOBE NEWSWIRE) — Exxe Group, Inc. (OTC PINK: AXXA), a diversified company focused on synergistic acquisitions in real estate, sustainable technology, media, financial services, and agribusiness, today announced that it has acquired PORTLANI PROCESSING (“PORTLANI”), a highly regarded, Europe-based agricultural processing and an industrial warehousing company. PORTLANI specializes in the processing, testing, and storing of a diverse array of agricultural products including various grains and hemp. This transaction represents the third of four related deals that will enable Exxe Group to establish a substantial end-to-end global footprint in the fast-growing, multi-billion-dollar agribusiness marketplace.
Target Overview, Third Agribusiness Acquisition:
Transaction Details: PORTLANI was acquired through a combination of private equity funding, assumption of debt, and privately structured capital investments. Exxe Group acquired controlling interest representing a total of approximately $11 million in assets and we preliminarily project $6M+ revenue for 2020. Upon closing, PORTLANI will join the Exxe Group Agribusiness division.
PORTLANI is an agricultural processing company that enables farmers and agricultural merchants to store meaningfully higher crop volumes and reduce post-harvest losses caused by inadequate storage and outdated laboratory technology. The company boasts extensive logistics facilities, including newly constructed spacious climate-controlled warehouses, loading/off-loading stations with the capacity to accept more than 60,000 tons of bulk grains monthly, and direct rail lines connected to warehouses with the capacity to accept more than 6,500 tons of bulk grains daily (10 railway carriages).
While the existing infrastructure is impressive, the crown jewel in this acquisition is the state-of-the-art laboratory equipped with cutting-edge technology to process various crops, including hemp and will be enhanced even further as part of the Company’s initiatives.
Exxe Group is set to dramatically boost PORTLANI’s already solid processing and storage capabilities by integrating the existing laboratories, approach and infrastructure with next generation agricultural technologies that leverage imaging, AI, and other features. This approach incorporates analytics to reduce the post-harvest bottlenecks and issues that can cripple farmers with losses. Moreover, these resources can increase crop values for related and third party farmers and merchants, thereby raising the value of the overall services.
In the near term, PORTLANI’s range of services and thus revenue will be expanded with installation of a modern soy and sunflower seeds oil extraction plant offering an annual capacity of 40,000 tons. It will include seed pre-treatment, a highly efficient and automated soy and sunflower seed oil pressing process, and oil refinery units. The plant will produce high quality sunflower seed oil for global export.
Exxe Group seeks out large-scale opportunities and inefficiencies in which to improve, exploit, integrate and replicate in multiple markets. Sunflower oil is one such example as worldwide consumption of sunflower oil ranks third of all vegetable oils due to rising health consciousness; hence, various sources show projected CAGR of 5% by 2023. Increasing exports of sunflower oil can accelerate the growth of the market even further as demand for sunflower oil imports is rising in many countries, including India and China. For example, sunflower oil exports to India increased by more than 20% in January 2019 from January 2018. Other products of sunflower seeds oil production are widely used across different industries, such as edible protein powder, steam and electricity, as well as animal feed.
Synergy and Exponential Growth:
This acquisition is not just complementary to our recent acquisition of ONYX, the physical commodities trading company and DIONI, agri-transportation company. Exxe Group’s objective is to leverage existing expertise within the Group and grow its presence in the Agribusiness marketplace. The transaction is highly synergistic within the entire Exxe Group as it will utilize other units and our expertise to leverage Exxe’s ever growing presence in the Agribusiness marketplace.
Exxe’s Strategy: Fully Integrated Agribusiness
This acquisition of PORTLANI is the third acquisition of four major Agribusiness target acquisitions. After its completion, Exxe Group plans to quickly finalize contracts to acquire at least one more core company in this segment.
Doctor Eduard Nazmiev, PhD, CEO of Exxe Group noted “We are most excited about the PORTLANI acquisition, and especially the leverage and reach it will bring our Agribusiness segment once we heighten the existing capabilities through next generation technologies. With a core offering that seeks to increase valuations through higher quality, efficiency price tags will ultimately bring higher recurring revenue streams for the Company. Overall, our Agribusiness transactions are the building blocks of our goal of serving as a fully integrated supply chain from seed to buyer which includes planting, crop harvesting, processing, quality control, storage, and transportation to the end buyer. These implementations will add substantial value to our current Agribusiness operations and foster client loyalty. Beginning sometime in 2020, Exxe plans to replicate this model in multiple global locales, particularly in underdeveloped markets in Europe and around the world. This strategy can quickly grow market share in several crops, along with revenue growth and profit. Plus, with our unique expertise and heralded opportunities in hemp, we anticipate broadly increasing our role and market share in hemp in multiple locales.”
For additional information go to www.exxegroup.com
About Exxe Group: Exxe Group is a diversified corporation focusing on acquisitions in the following sectors: real estate, technology, media, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance – accelerating their growth by providing both access to capital and management expertise.
Exxe Group IR: [email protected]
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