MUMBAI: In probably the most largest out of the country offers via India Inc in recent years, chemicals manufacturer UPL (formerly United Phosphates) on Friday teamed up with Abu Dhabi Investment Authority and TPG to snap up Florida-based Arysta LifeScience for $4.2 billion in an all-cash deal.
The transaction will reinforce the placement of UPL as a global leader within the agriculture solutions marketplace and make it a $Five-billion entity in combined gross sales, offering it a $200-million savings through operational synergies.
The tie-up will see Abu Dhabi Investment Authority, which is the world’s second-largest sovereign wealth fund, and personal equity primary TPG Capital infusing $1.2 billion into UPL Corporation, the Mauritius-based global arm of UPL and the acquirer company, and can collectively personal 22%.
These new investors will infuse $600 million each and every, UPL said in a commentary. Though identified for acquisitions, Arysta is UPL’s largest guess. Once finished, it's going to make UPL the world’s fifth-largest crop-protection company with the highest three being Bayer, DuPont and Syngenta.
It will also be the most important generic participant with a combined earnings of $Five billion. Currently it's the ninth-largest participant.
UPL vice-chairman Vikram Shroff said the all-cash deal was signed between UPL Corporation and the Florida-based, NYSE-listed Platform Specialty Products Corporation’s farm pesticides trade underneath Arysta Life Science logo and its subsidiaries.
Platform is a number one chemical maker and Bill Ackman’s Pershing Square Capital Management is its largest stakeholder with 14% stake. Its subsidiary Arysta is a global provider of leading edge crop defense solutions, including bio solutions and seed treatment.
Arysta was formed through a mix of Arysta Life Science, bought via Platform in February 2015 and two further crop defense chemical firms, Agriphar and Chemtura Agro Solutions of Chemtura Corporation, bought via Platform in 2014.
For the yr to March 2018, Arysta reported an operating earnings of $2 billion and operating benefit of $424 million.
For the remainder of the investment hole, UPL has tied up a take hold of of lenders to boost $three billion to fund the debt-driven deal.
The transaction will reinforce the placement of UPL as a global leader within the agriculture solutions marketplace and make it a $Five-billion entity in combined gross sales, offering it a $200-million savings through operational synergies.
The tie-up will see Abu Dhabi Investment Authority, which is the world’s second-largest sovereign wealth fund, and personal equity primary TPG Capital infusing $1.2 billion into UPL Corporation, the Mauritius-based global arm of UPL and the acquirer company, and can collectively personal 22%.
These new investors will infuse $600 million each and every, UPL said in a commentary. Though identified for acquisitions, Arysta is UPL’s largest guess. Once finished, it's going to make UPL the world’s fifth-largest crop-protection company with the highest three being Bayer, DuPont and Syngenta.
It will also be the most important generic participant with a combined earnings of $Five billion. Currently it's the ninth-largest participant.
UPL vice-chairman Vikram Shroff said the all-cash deal was signed between UPL Corporation and the Florida-based, NYSE-listed Platform Specialty Products Corporation’s farm pesticides trade underneath Arysta Life Science logo and its subsidiaries.
Platform is a number one chemical maker and Bill Ackman’s Pershing Square Capital Management is its largest stakeholder with 14% stake. Its subsidiary Arysta is a global provider of leading edge crop defense solutions, including bio solutions and seed treatment.
Arysta was formed through a mix of Arysta Life Science, bought via Platform in February 2015 and two further crop defense chemical firms, Agriphar and Chemtura Agro Solutions of Chemtura Corporation, bought via Platform in 2014.
For the yr to March 2018, Arysta reported an operating earnings of $2 billion and operating benefit of $424 million.
For the remainder of the investment hole, UPL has tied up a take hold of of lenders to boost $three billion to fund the debt-driven deal.
UPL buys US company Arysta Life for $4.2 billion
![UPL buys US company Arysta Life for $4.2 billion]()
Reviewed by Kailash
on
July 21, 2018
Rating:
