14:24 PM | August 6, 2014 | Lindsay Frost
Platform Specialty Products (Miami), formed by the acquisition of specialty chemical maker MacDermid, has agreed to acquire crop protection chemicals maker Agriphar (Ougree, Belgium) for €300 million ($400 million). This deal, when combined with Platform’s recently announced $1-billion acquisition of Chemtura AgroSolutions’ (CAS) business, gives the company a significant foothold in agrochemicals, Platform says. Agriphar posted 2013 revenue of €127 million and adjusted Ebitda margin slightly above 20%, Platform says.
Agriphar produces total and selective herbicides for crops such as tomatoes, potatoes, soya beans, and onions. The company also makes fungicides, insecticides, and growth regulators with end markets primarily across Europe, the company says. The deal is expected to be funded through a combination of debt and cash on hand, with closing in the fourth quarter, the company says.
“The acquisition of Agriphar is exemplary of the strategy we outlined following our initial acquisition of MacDermid and is an attractive bolt on to our pending Chemtura AgroSolutions (CAS) acquisition,” says Martin Franklin, Platform’s founder and chairman. “We are delighted to welcome Agriphar’s team to [Platform] and look forward to working with them to build a leading business in the [pesticides] space over the long term.”
Agriphar’s main operational facility is in Belgium, and it owns distribution subsidiaries in France, Spain, Greece, and Italy. The CAS and Agriphar acquisitions are both expected to close in the fourth quarter. Agriphar's capital expenditures excluding capitalized registration costs are below 2% of revenue, Platform says. Synergies are expected to be in excess of 25% of underlying Ebitda following integration with CAS.