Coromandel to acquire Bio-Pesticides business of EID Parry for Rs 338 crore
ET Bureau|
Dec 25, 2017, 06.37 PM IST
Coromandel International, India's second largest phosphatic fertiliser player with interests in fertilisers, crop protection, specialty nutrients, organic fertilisers, has signed a term sheet to acquire the Bio-Pesticides business from E.I.D. Parry together with its wholly owned subsidiary Parry America, Inc, USA through a slump sale.
The transaction is valued at Rs 338 crore. which includes purchase of Bio-Pesticides business of E.I.D. Parry together with its R&D unit, captive plantations and its wholly owned subsidiary Parry America, Inc.
A. Vellayan, executive chairman, Murugappa Group which owns Coromandel International, said, "The transaction is part of the strategic plan of the company to expand its Crop Protection business. With Organic movement gathering momentum in recent times, need for natural/microbial pest control solutions have been gaining traction."
The bio-pesticides business is engaged in the manufacture and marketing of neem based Azadirachtin technicals and formulations, plant extract based bio-stimulants, etc. It has a manufacturing facility in Tamil Nadu and a research and development centre.
"The acquisition enables the company (Coromandel) to gain entry to this segment, provides access to the developed markets of United States and Europe, enhance its presence globally addressing multiple crop and consumer segments and provide integrated pest management solutions," Vellayan said.
Coromandel International feels that the complementary market presence in both Indian and global markets by both the companies provides an opportunity for both chemical and bio-pesticides to grow.
"Post-acquisition, Coromandel will further strengthen its position in the crop protection segment. Combined R&D capabilities of both the businesses with diverse specialization on agro chemicals and biologicals can help in delivering new products which can offer unique positioning in the market," said Sameer Goel, managing director, Coromandel International.
The transaction is valued at Rs 338 crore. which includes purchase of Bio-Pesticides business of E.I.D. Parry together with its R&D unit, captive plantations and its wholly owned subsidiary Parry America, Inc.
A. Vellayan, executive chairman, Murugappa Group which owns Coromandel International, said, "The transaction is part of the strategic plan of the company to expand its Crop Protection business. With Organic movement gathering momentum in recent times, need for natural/microbial pest control solutions have been gaining traction."
The bio-pesticides business is engaged in the manufacture and marketing of neem based Azadirachtin technicals and formulations, plant extract based bio-stimulants, etc. It has a manufacturing facility in Tamil Nadu and a research and development centre.
"The acquisition enables the company (Coromandel) to gain entry to this segment, provides access to the developed markets of United States and Europe, enhance its presence globally addressing multiple crop and consumer segments and provide integrated pest management solutions," Vellayan said.
Coromandel International feels that the complementary market presence in both Indian and global markets by both the companies provides an opportunity for both chemical and bio-pesticides to grow.
"Post-acquisition, Coromandel will further strengthen its position in the crop protection segment. Combined R&D capabilities of both the businesses with diverse specialization on agro chemicals and biologicals can help in delivering new products which can offer unique positioning in the market," said Sameer Goel, managing director, Coromandel International.
