Agrochemicals manufacturer Makhteshim Agan Industries Ltd. (TASE: MAIN) is reportedly in the running to acquire Japanese crop protection and life sciences firm, Arysta LifeScience Corporation in a transaction valued at $2 billion.
India’s “Business Standard” reports, “United Phosphorus Ltd. (BSE:512070) and Tata Group enterprise Rallis India Ltd. (BSE:500535) are in the race to acquire the world’s largest privately held crop protection and life sciences firm, Arysta LifeScience Corporation, from private equity firm Olympus Capital Holdings. Sources close to the development said these two Indian companies were among the six contenders for the Tokyo-based firm. The acquisition is expected to cost nearly $2 billion. Other bidders include an Israeli firm, Australia’s Nufarm and Blackstone, the global private equity fund.”
The Israeli company is question is reportedly Makhteshim Agan.
“Business Standard” quotes a banker as saying, “Six companies have been invited to submit their non-binding bids. A decision on the sale of Arysta is expected by the end of October.”
Olympus Capital appointed Goldman Sachs (NYSE:GS) and Lehman Brothers (NYSE:LEH) to handle the sale of Arysta. Arysta had about $1 billion in sales in 2006. The company markets 150 products and operates in 125 countries, mostly emerging markets. It has 2,300 employees.
Last month, there were reports in the Australian media that Makhteshim Agan might acquire Nufarm Ltd. (ASX:NUF), which has a value of $2.5 billion. Nufarm is the world’s second largest generic agrochemicals maker after Makhteshim Agan. Although Nufarm’s core business in Australia, it operates in other countries, including through Brazilian subsidiary Agripec, which had $250 million in sales in 2006, 20% of Nufarm’s total turnover.
Makhteshim Agan, a subsidiary of IDB Holding Corp. Ltd. (TASE:IDBH), is the world’s largest generic agrochemicals maker and seventh largest agrochemicals maker.
Published by Globes [online], Israel business news - www.globes.co.il - on September 11, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007