28 June 2010 12:08 [Source: ICIS news]
LONDON (ICIS news)--Israel’s Makhteshim Agan has signed a letter of intent to acquire privately held crop protection company Albaugh for $340m in cash and $455m in notes, it said on Monday.
The Israeli agrochemicals company will also assume up to $280m of Albaugh’s debt, while Albaugh would acquire 59m of Makhteshim’s common shares - or around 12% of its market share.
The deal had the potential to contribute to earnings within one year of completion and bring potential operating synergies of $50m-$60m, the companies said.
It was expected to close in the fourth quarter of 2010, subject to successful completion of due diligence and the relevant regulatory clearances, they added.
The combined entity would profit from economies of scale, cross-selling opportunities and improved production capabilities, they said.
The acquisition would significantly expand Makhteshim's operations in the ?xml:namespace>
Albaugh’s current sole owner, Dennis Albaugh, will become chairman of
Makhteshim's chairman, Avraham Bigger, said: "Albaugh is an excellent strategic and geographic fit, and the directors of MAI [Makhteshim Agan Industries] believe the acquisition represents compelling value."
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