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Australia's Nufarm to buy European crop protection portfolio for $490 milliom
October 23, 2017 / 11:44 PM / a month ago

Australia's Nufarm to buy European crop protection portfolio for $490 milliom

(Reuters) - Agricultural chemicals maker Nufarm Ltd (NUF.AX) said it would buy a range of European crop protection product lines for $490 million to strengthen its position in Europe where it generates its highest crop protection margins.

Nufarm said it would buy the product portfolio, which includes more than 50 crop protection formulations, from Adama Agricultural Solutions Ltd (ADAM.N) and Syngenta AG (SYNN.S).

The acquisition is expected to be mid-to-high single digit earnings per share accretive in fiscal 2019, the company said in a statement.

The portfolio is also expected to generate revenues of about A$250 million ($195.28 million) and earnings before interest, tax, depreciation and amortization of about A$95 million to A$100 million in the 2019 financial year, Nufarm added.

Nufarm said the deal will be funded by a capital raising of about A$446 million and existing debt facilities.

The company would also buy existing product inventory for about $50 million after completing the deal, it said.

The company had requested for a halt in trading of its shares earlier in the day ahead of the announcement.

($1 = 1.2802 Australian dollars)

Reporting by Christina Martin in Bengaluru; Editing by Stephen Coates and Eric Meijer

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