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.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.