ADAMA and Jiangsu Huifeng Bio Agriculture 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.
Following the completion of a series of transactions in two phases, 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 US$175 million).
In Phase I of the transaction, 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.
Ignacio Dominguez, President and CEO of ADAMA, said: “Through this acquisition, we continue to accelerate our growth strategy both in the Chinese market as well as globally, gaining significant competitive advantage in worldwide markets through key backward-integrated molecules. Mr. Zhong Hangen, Chairman of Huifeng, has built Huifeng into one of the leading crop protection manufacturers in China, and we are excited to bring it into the ADAMA fold as a key part of our global operational and commercial infrastructure.”