Makhteshim Agan to buy Mexico's BravoAg, stake in S Korea's JK

17 November 2010 14:21  [Source: ICIS news]

LONDON (ICIS)--Makhteshim Agan Industries (MAI) will expand its presence in the North American and Asian markets through an agreement to buy Mexico’s Ingenieria Industrial (BravoAg) and after taking a 51% stake in South Korea’s JK, the Israeli crop protection company said on Wednesday.

The company said that both transactions had been signed, but financial terms were not disclosed.

Makhteshim Agan added that the acquisition of crop protection company JK had closed and that the acquisition of copper chemical manufacturer BravoAg was expected during the next few weeks.

“Together, these new operations are expected to generate sales of approximately $40m (€30m) in 2010, and will contribute to MAI's sales starting in 2011,” the company said.

BravoAg has annual sales of around $30m, and has manufacturing facilities in Mexico in addition to a national sales force.

BravoAg CEO Alberto Bravo will remain as head of the company’s operations.

Makhteshim Agan said its stake in JK, which has annual sales of approximately $10m, would provide it with a direct presence in South Korea’s crop protection market.

“With these transactions, we continue to implement our strategy of expanding into emerging markets through buying existing platforms and using them to generate further growth,” said Erez Vigodman, Makhteshim Agan’s president and CEO.

In September, the company cancelled its negotiations to acquire privately held crop protection company Albaugh following findings made during the course of the due diligence process.

Albaugh said that Makhteshim Agan had demanded changes in terms and conditions in the definitive purchase documentation that were unacceptable, and as a result the parties agreed to terminate negotiations.

($1 = €0.74)

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By: Hilde Ovrebekk
+44 20 8652 3214

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