Nufarm Announces Acquisition of European Portfolio

Nufarm Limited today announced that it has entered into an agreement to acquire a portfolio of crop protection products (“Century Portfolio”) from Adama Agricultural Solutions Ltd (“Adama”) and Syngenta Crop Protection AG and related group companies (“Syngenta”) for US$490 million. The ‘Century’ product portfolio includes over 50 crop protection formulations which are registered for use in European markets and is expected to generate revenues of approximately A$250 million; an EBITDA contribution of approximately A$95-100 million; and be mid to high single digit earnings per share accretive (pre-amortisation) in the first full year of Nufarm ownership (FY2019).

Nufarm will also acquire existing product inventory (currently estimated to be US$50 million) on completion of the transaction, which is expected to occurin early 2018. Nufarm will fund the acquisition via existing debt facilities and a fully underwritten equity raising.

The portfolio is being divested by Adama and Syngenta to meet the European Commission (“EC”) requirements relating to the acquisition of Syngenta by ChemChina. Completion of the transaction is subject to approval by the EC of Nufarm as a “suitable purchaser” to acquire the Century Portfolio as well asfinal formal regulatory clearance by the relevant European authorities.

The portfolio includes herbicides, fungicides, insecticides, seed treatments and plant growth regulators which are sold in 29 European markets including Germany, Spain, France, Italy, Poland, Romania and Hungary. Nufarm will take ownership of some 260 registrations relating to the products and will have access to additional registrations for new products currently within the regulatory approval process. No physical assets (apart from inventory) or personnel will be transferred as part of the transaction.

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