JOINT PRESS RELEASE
Bloemenveiling Aalsmeer and FloraHolland
The international market position is strengthened by the merger

[The Hague, 26 October 2006] The concentration in supply and demand in horticulture is under pressure. Worldwide, the large-scale production and trade in flowers and plants is growing at a high pace and competition is increasing. Growers demand excellent marketing possibilities at competitive costs and exporters want lower chain costs. All these developments motivate flowerauctions FloraHolland and Bloemenveiling Aalsmeer to merge. The management of both cooperatives therefore signed a declaration of intent on Thursday 26 October. A powerful marketing cooperative thus originated, with a turnover of 4 billion euros.

The intended merger combination will be called FloraHolland, combined with the recognisable logo of Bloemenveiling Aalsmeer, the red tulip. The head offices of the merger combination are in Aalsmeer.

At the time of signing of the agreement of intent, General Director Jacques Teelen of FloraHolland referred to the significance of a strong network of physical market sites, as well as a mediation department and an import sourcing organisation. Teelen: “This network must expand its position as a whole to remain strong within the international competition in the floricultural market. The Dutch floricultural position is influenced by world-wide production, trade, logistic and ICT developments.

An accelerated move towards large-scale activities takes place worldwide. Growers and trading companies both locally and abroad, trade to an increasing extent directly and world wide retail development also continues at great speed. This all effects the worldwide position of the Dutch auction system’s strength.”
“The main aims of the merger are to strengthen the market position for suppliers and clients, and chain cost savings through increased efficiency. We want to generate transactions on the side of both suppliers and buyers at the lowest possible costs. For this, a further increase in scale is essential”, said Management chairman Timo Huges of Bloemenveiling Aalsmeer.
The new organisation will exist of three export auctions (Aalsmeer, Naaldwijk and Rijnsburg), three regional auctions, a mediation office and an import sourcing department. The current ranges of productivity improvement are continued at the auctions. Combined with new possibilities which originated for employees within the cooperative, the auctions do not expect drastic consequences for the personnel.

Standardisation
Management chairman Oosterom of Bloemenveiling Aalsmeer: “We are convinced that we are stronger together. We will be able to serve the production and trade better than each of the auction organisations on its own. The demand towards standardised and integrated services is constantly increasing. The market specifically demands standardisation and unity from the auction organisations in the area of product sourcing, marketing services, logistics and infrastructural facilities.“
“The new combination is a single worldwide oriented cooperative with a broad range of services within a network of market sites. This way, we can generate a clear and high-quality international position”, Management chairman Gerrit Ravensbergen of FloraHolland summarises.

Merger proposal
The discussed developments have already urged the Management Chairmen of Bloemenveiling Aalsmeer and FloraHolland to jointly discuss the subject some time ago and to then take this up with their individual management. After a number of intensive discussions, both managements have drawn up a positive balance sheet. Both came to the co