Image source: PR Newswire
ADAMA will acquire a majority stake in the vast majority of Huifeng’s synthesis and formulation facilities
China-based ADAMA Ltd. (ADAMA) a global leader in crop protection, providing solutions to farmers across the world to combat weeds, insects and disease and Jiangsu Huifeng Bio Agriculture Co., Ltd (Huifeng) announced that they have entered into an agreement in terms of which ADAMA will acquire a majority stake in the vast majority of Huifeng’s synthesis and formulation facilities.
- Phase I: As previously announced in November 2019, ADAMA will acquire a 50% stake in Shanghai Dibai Plant Protection Co., Ltd., a wholly-owned subsidiary of Huifeng focused on the sale and distribution of key formulated crop protection products in China
- Phase II: Under the agreement now executed, ADAMA will acquire:
– a 51% equity stake in Jiangsu Kelinong Co., Ltd. (“Kelinong”), a newly established, wholly-owned subsidiary of Huifeng, to which Huifeng is to transfer its key crop protection synthesis and formulation facilities - ADAMA will hold 51% of the equity in both Kelinong and Dibai, providing ADAMA with a majority stake in one of China’s leading crop protection manufacturers, and significantly bolstering ADAMA’s commercial presence in the China crop protection market
- The total cash consideration for both phases of the transaction is approximately RMB 1,224 million (approximately $175 million)
- Closing of Phase II is subject to customary closing conditions, including regulatory and other corporate approvals, and is further subject to full resumption of production at the relevant facilities of Huifeng.
ADAMA will obtain the exclusive, indefinite, royalty-free rights to license Huifeng’s existing and future registrations in China and following Phase II, ADAMA will own all registrations, with all sales of formulated products in China to be managed by ADAMA.
