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TPG, ADIA to invest $1.2 bn in UPL arm to back Arysta acquisition
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Indian agrochemical major UPL Ltd will buy US-based Arysta LifeScience Inc. for $4.2 billion (Rs 28,900 crore) in an all-cash deal that it will finance with help from private equity firm TPG and Abu Dhabi Investment Authority (ADIA).

UPL’s Mauritius unit, UPL Corp, has agreed to acquire Arysta and its subsidiaries from NYSE-listed Platform Specialty Products Corporation, the Indian company said in a stock-exchange filing.

TPG Capital Asia and the Gulf kingdom’s sovereign wealth fund will invest $1.2 billion divided equally in UPL Corp for a total stake of about 22% stake. The remaining $3 billion has been arranged in debt from Japan’s MUFG Bank and Rabobank.

UPL said the acquisition will enable it to offer a complete basket of solutions for various arable as well as specialty crops comprising crop protection chemicals, biosolutions and seeds covering the entire crop value chain from planting to post-harvest activities.

“Arysta has a differentiated position in the crop protection market given its focus primarily on specialty applications and tailored local solution. This transaction is a ‘perfect match’ with powerful synergies across geographies, crops and products, strengthened through best-in-class manufacturing and differentiated R&D capabilities,” said Jai Shroff, group chief executive officer of UPL.

Puneet Bhatia, co-managing partner at TPG Capital Asia, said that, with the addition of Arysta, UPL will reach more than 130 countries with more than 12,800 products.

Arysta LifeScience focuses on the development, formulation, registration, marketing and distribution of crop protection products for specialty applications, including seed treatments and biosolutions.

The company employs 3,300 people in 60 countries. It reported operating revenue of $2 billion and adjusted earnings before interest, tax, depreciation and amortization of $424 million for the year through March 2018. UPL Ltd reported operating revenue of $2.7 billion and EBITDA of $543 million for 2017-18.

The deal is subject to customary closing conditions and regulatory approvals. The transaction is likely to be completed by the end of this year or early next year.

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