Exxe Group Acquires Agri-Transport Firm, Tapping into Agricultural Logistics and Storage Boom
Sales and Service Capacity of the Target to Increase Exponentially Immediately
NEW YORK, Sept. 27, 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 DIONI Logistics Agri-Transport Services (âDIONIâ), an agricultural transport company located in Paris, France, to distribute its agricultural products which include various grains and hemp. This transaction represents the second 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, Second Agribusiness Acquisition:
Transaction Details: DIONI 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 $9 million in company-wide assets and approximately $3 million in 2018 revenue, which was secured by Exxeâs contractual commitments over a three-year period. Exxe plans to provide growth capital as well as a payout to the original owners. DIONI boasts several European locations including France, Switzerland, Bulgaria, Greece and Ukraine, and is currently in the process of relocating its global headquarters to New York in order to be covered by US regulatory requirements for greater stock market transparency. DIONI will fall under Exxeâs Agribusiness division.
DIONI is an agricultural transportation company with extensive logistics facilities, over 20 years of experience, and provides a wide range of agricultural transportation services. The Company manages a large fleet including owned, leased, financed and managed in partnership of approximately 80 transport vehicles for the transportation of bulk grains, with plans to double the number of trucks in 2020, and add new, first-class warehouses for the storage and the processing of wheat and other grains. The warehouses are in contractual obligations with DIONI and are strategically located within a close proximity to seaport for swift import/export that ensures highly efficient and cost-effective logistics.
The company currently has a growth model set in order to operationally handle 200,000 hectares yearly at a gross weight of approximately one million tons. With current shipping capacity per truck of approximately 40 tons, and boat load capacity of 10,000- 25,000 ton per trip the fleet will consistently handle freight and has the capability to operate at or near maximum capacity. Currently, logistical operations and metrics state all of the essentials of a critical, high demand industry that offers large, scalable growth. According to McKinsey & Co., logistics, trade, and processing infrastructure are critical bottlenecks in the industry and since they can be dramatically improved via DIONI and our initiatives, we have an opportunity to transform this segment. Moreover, this part of the agribusiness industry is huge and growing at a rapid rate. McKinsey estimates that in China alone the size of the storage and transportation segment of the agribusiness industry is $18 billion annually, growing at 10-15%. Clearly, the size of the global market is in the tens of billions, enjoying similar rates.
Synergy and Exponential Growth:
This acquisition is not just complementary to our recent acquisition of ONYX, the physical commodities trading company. The transaction is highly synergistic within the entire Exxe Group as it will utilize other units and our expertise to leverage Exxeâs ever growing presence in the Agribusiness marketplace. Importantly, through the expansion of its business model and operational leverage, Exxe will exponentially increase DIONIâs business opportunities. These initiatives include the increase in its overall capacity to account for a substantial rise in on-demand, agriculture transportation for third party farming co-ops and large farmers, who are clamoring for such services.
Demand is very high as the On-Time Delivery of agricultural products to the marketplace to prevent spoilage and waste is crucial to maintaining profits through agricultural commodities. To achieve industry-leading efficiency and execution, Exxe Group has paired leadership from DIONI Logistics Agri-Transport Services to Exxe subsidiary Neccentric Software Systems. As part of its software platform, Neccentric has developed artificial intelligence (AI) algorithms that map out the most cost-effective and efficient geographical transport nodes. These algorithms combine AI with GPS navigation systems to accurately direct the best routes and achieve the most efficient time of delivery from Points of Origin to Points of Export. The result is optimal cost efficiency and greater profit. Thus, the reduction in shipping time fosters additional transport opportunities and enhances the synergy between DIONI and ONYX by creating a joint definitive service, which creates a major competitive advantage over its competition.
Exxeâs Strategy: Fully Integrated Agribusiness
Shortly following the close of the Exxe-Onyx and Exxe-DIONI transactions, Exxe Group plans to finalize contracts to acquire two additional companies in this segment. These four transactions combined will accomplish our goal of building 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. 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, revenue growth and profit, aided in large part by targeted capital improvement, and our in-house expertise in marketing our industrial agribusiness which include much sought after commodities, such as hemp, along with other major crops.
Exxe Group CEO, Doctor Eduard Nazmiev, PhD remarked: âExxe 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 agribusiness 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.â
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.
CONTACT: Exxe Group IR: firstname.lastname@example.org
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