Mumbai: United Phosphorus Ltd has, through its UK subsidiary, acquired 100 per cent stake in Argentina's ICONA and ICONA San Luis S.A., a manufacturer and distributor of crop protection products, for $10 million.
The share purchase includes all stocks, product registrations, manufacturing sites and all other property rights associated with the business of ICONA. It is all cash offer and the company will find this through its internal accruals, the company said in a filing with the Bombay Stock Exchange (BSE).
Buenos Aires-based ICONA is a debt free company, having more than 35 registrations in Argentina. It has a strong manufacturing base at Capilla del Senor, near Buenos Aires and at Justo Daract in San Luis.
ICONA and ICONA San Luis SA have combined revenue of $13 million, the statement added.
ICONA has its own distribution network covering more than 1,000 customers. For the year ended September 30, 2006 ICONA reported consolidated revenues of $13 million. The total cost of acquisition for the company is $10 million and the acquisition is effective July 18.
This acquisition will provide United Phosphorous with a much stronger platform to expand and strengthen its presence in Argentina. With the strong agricultural commodity pricing the market is going to be very good in Argentina.
The acquisition of ICONA is in line with the company's strategy to grow its business globally both organically and through acquisitions, the statement added.
This is the company's third acquisition in 2007, following its acquisition of the Cerexagri group of companies and the global rights to two tin compounds from Dupont.
United Phosphorous is the largest Indian agrochemical player and among the top five generic players globally in this industry. It is engaged in research, manufacture and distribution of agrochemicals and speciality chemicals across the globe. The company's revenue's for the year ending March 2007 were in excess of $560 million (Rs2,470 crore).
Through acquisitions, strategic alliances and network of subsidiaries, the company has built a marketing network across the globe and its international revenues account for over 70 per cent of its total revenues. It exports to over 100 countries, the primary markets being Europe and North America.
The company has over 3,100 employees and has 22 operating plants (8 in India, 9 in Europe, 1 in the US and 4 in other parts of the world). Most of them are ISO compliant in terms of quality, safety, environment and occupational health.