Tel Aviv | Reuters — Israeli crop protection firm Adama said Thursday it will acquire a majority stake in Jiangsu Huifeng Bio Agriculture’s crop protection plants for about US$175 million.
In the first phase, it will buy 50 per cent of Shanghai Dibai Plant Protection, a wholly owned subsidiary of Huifeng focused on the sale of formulated crop protection products in China. This phase of the deal is expected to close in the coming weeks.
In the second phase Adama will buy a 51 per cent equity stake in Jiangsu Kelinong, a newly established, wholly owned subsidiary of Huifeng, to which Huifeng will transfer its key crop protection synthesis and formulation facilities. It will also buy another one per cent in Dibai.
Following these transactions, Adama will hold 51 per cent of both Kelinong and Dibai, providing it with a majority stake in one of China’s top crop protection manufacturers, Adama said.
Closing of the second phase is subject to full resumption of production at the relevant facilities of Huifeng, which is in the process of rectifying environmental issues and obtaining approvals to resume production.
“Through this acquisition, we continue to accelerate our growth strategy both in the Chinese market as well as globally,” Adama CEO Ignacio Dominguez said.
— Reporting for Reuters by Tova Cohen.