Nufarm Completes Acquisition Of Adama Products For European Market
As stated it would be done in the first quarter of 2018, Nufarm Limited has completed the Adama portion of the acquisition of the Century portfolio of products and assets. The company says it anticipates completing the Syngenta component of the Century portfolio yet this week. This was a divestment by Adama and Syngenta to meet the European Commission’s requirements for the acquisition of Syngenta by ChemChina.
The ‘Century’ product portfolio includes post-patented products and established brands with over 50 crop protection formulations and more than 260 registrations for use in European markets. The portfolio includes herbicides, fungicides, insecticides, seed treatments and plant growth regulators which are sold in 29 European markets. Nufarm has acquired the portfolio for a cash consideration of US$490 million, plus approximately US$25 million for inventory. In the first full year of Nufarm ownership (FY19), the portfolio is expected to generate revenue of approximately A$250 million and contribute EBITDA of approximately A$95 to $100 million. With purchases for the European spring season largely complete, and the status of channel inventories unclear until after closing, Nufarm anticipates a minimal EBIT contribution from the newly acquired product portfolio in the 2018 financial year, which is largely in line with our original expectations.
The transaction was first announced on October 24, 2017. The acquisition by ChemChina of Syngenta was completed in May 2017.