DLF acquires Gapp Semillas Seed Company in Argentina
DLF, global leader in forage and turf seed, has acquired the assets of Gapp Semillas S.A. based in Pergamino, Argentina. The acquisition is a strategic move to enhance the Group’s business platform in South America.
DLF’s investment in Gapp confirms the Group’s strategic goal to develop a strong business platform in South America. Gapp Semillas, established in 2007, is headquartered with administration, warehouse facilities and a trial station in Pergamino, and has a turnover of approximately 5 mill. USD.
“This investment is an important step in our strategic ambitions for South America. We established DLF Estero in 2016 in Uruguay and we have a growing business there. Argentina is by far the largest market for temperate grasses in South America, and with a growing economy and an improved political climate, now is the opportunity to enter Argentina,” says CEO of DLF, Truels Damsgaard.
“We have known Gapp for several years as a highly respected seed company. With the confidence and optimism that we experience in the agricultural sector in Argentina, we find, that the timing is right to scale-up the access to our plant genetics and high performing varieties. Gapp offers an excellent opportunity to leverage our ongoing investments in research and plant breeding even further. Our varieties, developed from our global research activities, are well adapted and well performing in many parts of South America. The acquisition of Gapp in Argentina and integration of our current seed production and sales activities in DLF Estero, enables us to participate and unlock a considerable potential for beef and dairy farmers – as well as for professional turf grass users in South America,” says Truels Damsgaard.
Guillermo Thisted, Gapp CEO & President of the Argentinian Seed Chamber (CSBC), sees good synergies and growth opportunities for Gapp under the leadership of DLF. “South America provides great opportunities for DLF, and Gapp Semillas is a very good match in DLF’s business strategy to grow their business in South America. We are confident that DLF, being a strong and innovative plant breeding and science-based company, will develop the seed business in an interesting and growing forage marked.”