Syngenta announced March 16 that it has completed the sale of Adama Agricultural Solutions Ltd (Adama) crop protection products to Nufarm Limited (Nufarm). The portfolio was divested by Adama and Syngenta to meet the European Commission’s requirements relating to the acquisition of Syngenta by ChemChina. Nufarm anticipates that the completion of the acquisition will take place in the next few days.
The $490 million transaction, plus approximately $25 million for inventory, was first announced in October 2017 and has since been progressing through the required regulatory approvals.
The product portfolio includes established brands with over 50 crop protection formulations and more than 260 registrations for use in European markets. It includes herbicides, fungicides, insecticides, seed treatments and plant growth regulators which are sold in 29 European markets.
In the first full year of Nufarm ownership (FY 2019), the portfolio is expected to generate revenue of approximately $250 million in Australian dollars and contribute EBITDA of approximately $95-100 million in Australian dollars.
“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,” Nufarm stated.