ADAMA Ltd., a leading crop protection industry, announced that it has acquired a majority of stakes of Jiangsu Huifeng Bio Agriculture’s synthesis and formulation facilities.

In phase 1 of the acquisition, declared in November 2019, ADAMA acquired a 50% share in the completely owned subsidiary of Huifeng, Shanghai Dibai Plant Protection Co. Ltd. (Dibai), that focused on the supply and distribution of crucial formulated crop protection products in China. The phase is estimated to close soon, following a few closing conditions and customary approvals.

Dibai has an impressive product range of crop protection formulations, an experienced sales team of about 170 employees across China, and an exclusive license to over 150 products registered by Huifeng. With the completion of Phase 1 transactions, ADAMA can leverage the indefinite, exclusive, royalty-free rights to license Huifeng's current and future registrations in China and by the closing of the second phase, ADAMA will own all sales of formulated and registrations in China.

Under the recently executed phase 2 agreement, ADAMA will take over a 51% equity share in a newly founded, totally owned subsidiary of Huifeng, Jiangsu Kelinong Co., Ltd. (Kelinong), according to which Huifeng is to transfer its main crop protection synthesis and formulation facilities and extra 1% in Dibai.

With the acquisition of Kelinong, ADAMA focuses on improving its business across China and worldwide, adding crucial backward-integrated molecules and competitive positions like Bromoxynil, Epoxiconazole, Prochloraz, MCPA, and Trinexapec, projected to foster significant expansion through ADAMA's worldwide market reach.

Once these transactions are completed, ADAMA will hold 51% equity in Dibai and Kelinong, which will make it the majority stakeholder in one of the leading crop protection manufacturers of China and significantly boosting the commercial presence of ADAMA in the country’s crop protection market.

The CEO and President of ADAMA, Ignacio Dominguez confirmed that through this procurement, the company will continue its growth strategy globally as well as in the Chinese market, further gaining noteworthy competitive advantages in the global market via key backward-integrated molecules.

The overall cash consideration of the transaction of both phases is around RMB 1,224 million.

Source: https://www.benzinga.com/pressreleases/20/10/n18110923/adama-acquiring-majority-stake-in-huifengs-crop-protection-synthesis-and-formulation-facilities