Israel’s Makhteshim Agan to buy crop protection firm Albaugh for $1 billion

Israel's Makhteshim Agan Industries (MAI), one of the world's largest manufacturers of branded off-patent crop protection solutions, yesterday agreed to buy US-based crop protection products company Albaugh Inc for about $1 billion to strengthen its presence in North and Latin America.

Under the terms of the deal, MAI will pay Albaugh $340 million in cash upon completion of the transaction, $455 million in seven-year promissory notes, 59 million common shares of MAI, which is equal to 12 per cent stake, and also absorb Albaugh's debt of $280 million.

Founded in 1979 and headquartered in Ankeny, Iowa, Albaugh is a leading off-patent crop protection company operating in the Americas, producing major genetically modified organism driven herbicides mainly for the Americas but also for the international market.

Privately-owned Albaugh, has advanced supply chain capabilities in North America's Midwest and is a leading producer in the Mercosur of 2,4-D and glyphosate with a leading low cost production position.

The company is the leading off-patent player in the Americas, particularly in the US, Mexico, Argentina and Brazil.

Tel-Aviv-based MAI is a world leading manufacturer and distributor of branded off-patent crop protection products. With sales of $2.2 billion in 2009, MAI ranks seventh in global agrochemical companies, fourth in Europe, with a global share of over 5 per cent.