ADAMA reports on progress towards Anpon acquisition
3rd January 2019
Leading global crop protection company ADAMA has reported that it is making significant progress towards the potential cash acquisition of Jiangsu Anpon Electrochemical Co. With 2017 sales of RMB 1,643 million (approximately $234 million) and located in Huai'An City, Jiangsu Province, Anpon is a fully backward-integrated manufacturer of key active ingredients used in crop protection markets worldwide, most notably Ethephon, Pymetrozine and Buprofezin, as well as intermediates such as chlor-alkali and other products, with advanced membrane production technology. Anpon is wholly-owned by ChemChina, ADAMA's controlling shareholder.
In recent years, ADAMA benefited from Anpon's strong manufacturing position, enhancing its portfolio with products and differentiated mixtures based on Anpon's molecules. The Company has been able to build market-leading positions in major markets such as the US, India and Australia. In China, Anpon brings a portfolio of product registrations to the ADAMA product offering, as well as a domestic sales force.
Anpon is fast becoming a key part of ADAMA's global operations, adding significant synthesis and formulation capabilities to the Company's China operational hub. Anpon is located adjacent to ADAMA's new global formulation facility, facilitating robust and continuous exchange of expertise and knowledge-sharing between the teams. Work at ADAMA's state-of-the art R&D facility in Nanjing is resulting in major process improvements in the Anpon production processes.
The parties have reached initial understandings on the intended transaction and are now working towards signing of a definitive purchase agreement. Any such agreement will be subject to the requisite corporate approval procedures as well as customary closing conditions, including the receipt of all required regulatory approvals. No financial details have been disclosed at this stage.