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Exxe Group closes first of four agribusiness acquisitions

DarcyMaulsby/iStock/Thinkstock corn pile by grain elevator
Acquisition of commodity trading entity enables Exxe to establish end-to-end global footprint in agribusiness marketplace.

Exxe Group Inc., a diversified company focused on synergistic acquisitions in real estate, sustainable technology, media, financial services and agribusiness, announced that it has acquired a controlling stake in Onyx Physical Commodities Trading Group (Onyx), with the expectation that the regulatory forms will be completed within the next week.

The transaction represents the first of four related deals that Exxe Group said will enable it to establish a substantial end-to-end global footprint in the fast-growing, multibillion-dollar agribusiness marketplace.

Onyx was acquired through a combination of private equity funding, installment payments, debt, privately structured capital investments and personal guarantees. A controlling interest representing a total of approximately $12 million in company-wide assets was secured by Exxe’s contractual commitments that included installments payable over a three-year period.

Onyx, which has offices throughout Europe, including France, Switzerland, Bulgaria, Romania, Turkey and Ukraine, is in the process of relocating its global headquarters from Paris, France, to New York City in order to be covered by U.S. regulatory requirements for greater stock market transparency. Onyx will fall under Exxe’s Agribusiness division.

Onyx is a physical commodity trading entity representing a network of farmers who produce wheat, barley, corn and sunflower over thousands of hectares of farmland, with the capacity to produce sought-after hemp on a global scale. The unique opportunity, the company noted, will leverage Exxe’s growing presence in the agribusiness marketplace.

“Implementing and incorporating Exxe’s [customer relationship management] marketing technology, coupled with Exxe’s Agribusiness management and financial expertise throughout its global network, Exxe poised to increase physical sales volume and gross profits over five-fold in a matter of months during a 12-month period,” the company said.

Total gross sales estimates could rise from approximately $5 million in 2018 to $25 million, thereby valuing the deal at $50 million.

The Onyx acquisition represents just one of the major deals in a pipeline currently underway by Exxe Group.

At the close of the Exxe-Onyx transaction, Exxe Group will go on to acquire three additional companies to build a fully integrated supply chain from seed to buyer that includes planting, crop harvesting, processing, quality control, storage and transportation to the end buyer. The additions will add substantial value to its current Agribusiness operations and foster client loyalty, the company said.

Exxe plans to replicate this model in multiple global localities, particularly in underdeveloped markets in Europe and around the world. The strategy, it said, can quickly grow market share, revenue growth and profits, aided in large part by targeted capital improvement and in-house expertise in marketing its industrial agribusinesses, which include commodities such as hemp and other major crops.

“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,” said Dr. Eduard Nazmiev. “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.”

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