The stake acquisition in Onyx is expected to support Exxe to expand its presence in the agribusiness marketplace
Image: Exxe acquires stake in Onyx. Photo: Courtesy Exxe Group
Exxe Group has acquired a controlling stake in Onyx Physical Commodities Trading Group (Onyx), a physical commodity trading entity, for $12m (£9.6m).
Onyx is a physical commodity trading firm that represents a network of farmers producing wheat, barley, corn, and sunflower over thousands of hectares of farmland, with the capacity to produce much sought-after hemp on a global scale.
Onyx has offices in throughout Europe including France, Switzerland, Bulgaria, Romania, Turkey and Ukraine. It is also in the process of relocating its global headquarters from Paris, France to New York City, US in order to be covered by US regulatory requirements for greater stock market transparency.
Acquiring stake in Onyx is expected to help Exxe to expand its growing presence in the agribusiness marketplace.
The purchase price includes a combination of private equity funding, instalment payments, debt, privately structured capital investments and personal guarantees.
The controlling stake was Exxe’s contractual commitments that included instalments payable over a three year period. With the deal now closed, ONYX will fall under Exxe’s Agribusiness division.
The deal is first of the four related deals for Exxe
The deal represents the first of four related deals that will enable Exxe Group to establish end-to-end global footprint in the agribusiness marketplace.
Exxe Group CEO Eduard Nazmiev said: “Exxe has made tremendous progress in multiple business lines, that includes integrating innovative finance, management, technology and media solutions to be readily applied to the commodities marketplace.
“I am confident that Exxe Group, as an integrator of digital technologies and management- consultancy with these latest acquisitions, has positioned itself for rapid expansion to achieve its goal of aggressive market share acquisitions, profitability in the current year, as well as, rapid realization and appreciation of shareholder value and price-per-share.”
The company aims to increase physical sales volume and gross profits over fivefold within months during a 12-month period.
The deal represents one of the major deals in a pipeline currently underway by the company. Other closings are expected to take place in the coming weeks.