Crop-chemicals company Nufarm has struck a $691 million deal to pick up a portfolio of products in Europe from Adama Agriculture Solutions and Syngenta Crop Protection.
Nufarm has been prowling for assets likely to be spun off amid a tide of multi-billion dollar deals in the global agriculture-chemicals industry. China National Chemical Corp. earlier this year secured European Union antitrust approval for its $US43 billion takeover of Swiss-based Syngenta on the condition it sell some of Syngenta and Adama’s assets.
Nufarm said it had agreed to buy a portfolio of established brands, with more than 50 crop-protection formulations and 260 registrations in European markets, from the companies for $US490 million, plus another $US50 million for inventory.
The deal will consolidate Nufarm’s position as a supplier in Europe and allow it to offer a broader suite of products in fungicides and insecticides, managing director and chief executive Greg Hunt said. The company currently generates its highest crop-protection margins in Europe, he said.
The company forecast the portfolio would contribute net sales of about $250 million and earnings before interest, tax, depreciation and amortisation of $95 million to $100 million in the 2019 financial year, improving overall margins and cash flow.
The deal will be funded via an underwritten $446 million share offer and $272 million from existing debt facilities, Nufarm said.
The portfolio being picked up by Nufarm includes herbicides, fungicides, insecticides, seed treatments and plant growth regulators that are sold in markets including Germany, Spain, France, Italy, Poland, Romania and Hungary. Completion of the deal remains subject to the European Commission’s approval of Nufarm as a “suitable purchaser,” as well as regulatory clearance by other European regulators.
At the same time, Nufarm said it had signed a long-term extension of a collaboration agreement with Sumitomo Chemical, which bought a stake in the Australian company in 2010 in a deal that saw the two companies agree to work together in areas including development, manufacturing and distribution.
By Robb M. Stewart
Source: Dow Jones Newswires via The Australian
The global snacking, international cereal and noodles, plant-based foods and North American frozen breakfast business will be known as Kellanova – home to brands such as Pringles, MorningStar Farms and Nutri-Grain. Kellanova’s portfolio will also encompass cereal brands, including Frosties, Special K, Krave and Coco Pops.
Nestlé is piloting refillable vending machines for its Milo and Koko Krunch brands as part of its effort to explore solutions that help to reduce the need for disposable packaging. In collaboration with digital start-up Qyos by Algramo, the machines will be available at two retailers in Indonesia during a 4-6 month trial period.
Carlsberg has announced that Jacob Aarup-Andersen will join the company as chief executive officer, replacing Cees ’t Hart, who will retire by the end of Q3 2023. Since 2020, Aarup-Andersen has served as CEO of ISS, a global facility services company that operates in 60 countries.