Agrochemicals major United Phosphorus Ltd’s overseas arm has acquired Netherlands-based SD Agchem (Europe) NV, a wholly owned subsidiary of Mumbai-based Punjab Chemicals and Crop Protection Ltd, for an undisclosed amount, according to a BSE filing.
With this deal, UPL will acquire all tangible and intangible assets, IPR, product registration, brands, distribution network and manufacturing facilities of SD Agchem. The acquisition will also ensure new and enhanced market access across Europe. Moreover, SD Agchem has an exciting registrations portfolio with products that will be complimentary to UPL's existing portfolio in Europe.
Shares of UPL closed at Rs 122.55 a unit on the BSE on Monday, up 0.57 per cent from the previous close in a weak Mumbai market on Monday.
SD Agchem is engaged in the production, marketing and selling of crop protection products in the European agrochemicals market. Its product range includes herbicides, insecticides and fungicides, registered in several European countries like the Netherlands, Belgium, the UK, France, Germany, Ireland, Denmark, Italy, Slovakia, the Czech Republic, Belarus and Switzerland. In 2006, the firm acquired Sintesis Quimica S.A., a manufacturer of agrochemicals, formulations and industrial products, for $10 million.
Founded in 1975, Punjab Chemicals & Crop Protection manufactures agrochemicals, pharmaceuticals and industrial chemicals. The company exports photo chemicals, specialty chemicals, fine chemicals and natural products, and offers a range of services including contract manufacturing, pilot plant facilities, R&D support and international exhibitions. The company had also acquired stake in Parul Chemicals Ltd for $1.43 million, Pegevo Beheer BV for $54.58 million and IA & IC Chemicals Pvt Ltd for $0.104million.
Mumbai-based UPL focuses on agrochemical, industrial chemicals and trading in chemical products. Last year, the company bought 51 per cent stake in DVA Agro Brazil for $150 million and prior to that deal, it had acquired 50 per cent stake in Sipcam Isagro Brasil SA for an undisclosed amount. It also holds stake in RiceCo LLC, DuPont, Mancozeb Business, EvoFarms S.A. and Ceraxagri SAS Ltd, among others. The company earned around $1,627 million in revenues for the year ended March 31, 2012.
(Edited by Sanghamitra Mandal)