US: Platform Specialty Products buys Chemtura’s agrochemicals unit for $1bn
The deal comes after Platform acquired agrochemicals firm Agriphar for €300m, and agreed to buy Arysta LifeScience for $3.5bn.
"The company expects the combination of CAS, Arysta, and Agriphar to offer more than $65m in synergies over three years."
The acquired businesses will allow Platform to strengthen its agrochemicals presence in more than 100 countries and will include a broad range of traditional and non-traditional crop solutions.
CAS' product portfolio includes insecticides, miticides, herbicides, fungicides, plant growth regulators and adjuvants, under the Acramite, Dimilin, Omite, Pantera, Vitavax and Rancona brand names. The unit generated revenues of $449m with adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $101m in 2013.
Platform Specialty Products CEO Daniel Leever said: "Bringing together the highly complementary businesses of Agriphar, CAS, and Arysta will cement Platform as a leader in this high-growth space and enable us to offer some of the most specialised and effective solutions to growers around the world.
"The asset-lite, high-touch business models, combined with the highly-accretive nature of these acquisitions, positions us to drive growth and create incremental value for our shareholders."
The company expects the combination of CAS, Arysta, and Agriphar to offer more than $65m in synergies over three years.
Platform has borrowed $130m by increasing its tranche B term loan facility, and a further €205m through a new tranche of euro denominated term loans, to fund a part of the CAS acquisition.
The sale of CAS is part of Chemtura's strategy to transform into an industrial speciality chemicals business.
Chemtura plans to use the proceeds to finance purchases of no more than $300m of Chemtura common stock.
CAS president Nelson Gibson said: "This is a transformative milestone for CAS as joining Platform provides us with new resources and opportunities to optimise all aspects of our business."
Source: www.chemicals-technology.com