TEL AVIV, Israel and BEIJING, China, Oct. 29, 2020 /PRNewswire/ — ADAMA Ltd. (“ADAMA”) (SZSE: 000553) and Jiangsu Huifeng Bio Agriculture Co., Ltd (“Huifeng”) (SZSE: 002496) today announced that they have entered into an agreement in terms of which ADAMA will acquire a majority stake in the vast majority of Huifeng’s synthesis and formulation facilities.
Transaction Overview:
Enhancing ADAMA’s commercial reach in China:
In China, the acquisition of Dibai will significantly bolster ADAMA’s position and offering in this key market. Dibai has an attractive portfolio of crop protection formulations, exclusive license to more than 150 products registered by Huifeng and an experienced sales team of approximately 170 employees across China.
In Phase I of the transaction, ADAMA will obtain the exclusive, indefinite, royalty-free rights to license Huifeng’s existing and future registrations in China and following Phase II, ADAMA will own all registrations, with all sales of formulated products in China to be managed by ADAMA.
Gaining access to backward-integrated and competitive positions in key molecules:
Through the acquisition of Kelinong, ADAMA aims to significantly enhance its business both globally and in China, adding key backward-integrated molecules with competitive positions, including Prochloraz, Bromoxynil, MCPA, Epoxiconazole, and Trinexapec, expected to drive significant growth through ADAMA’s worldwide market reach.
Ignacio Dominguez, President and CEO of ADAMA, said: “Through this acquisition, we continue to accelerate our growth strategy both in the Chinese market as well as globally, gaining significant competitive advantage in worldwide markets through key backward-integrated molecules. Mr. Zhong Hangen, Chairman of Huifeng, has built Huifeng into one of the leading crop protection manufacturers in China, and we are excited to bring it into the ADAMA fold as a key part of our global operational and commercial infrastructure.”
Mr. Zhong Hangen, Chairman of Huifeng, added: “We are very pleased that our collaboration with ADAMA has reached this crucial stage. We believe this commercial and operational partnership between two strong companies – a leading company in the China market with a strong product portfolio and established sales force, together with one of the world’s leading crop protection companies – will lead to significant new opportunities for expansion into the global market for Huifeng’s leading crop protection products.”
About ADAMA
ADAMA Ltd. is a global leader in crop protection, providing solutions to farmers across the world to combat weeds, insects and disease. ADAMA has one of the widest and most diverse portfolios of active ingredients in the world, state-of-the art R&D, manufacturing and formulation facilities, together with a culture that empowers our people in markets around the world to listen to farmers and ideate from the field. This uniquely positions ADAMA to offer a vast array of distinctive mixtures, formulations and high-quality differentiated products, delivering solutions that meet local farmer and customer needs in over 100 countries globally. For more information, visit us at www.ADAMA.com and follow us on Twitter® at @ADAMAAgri.
About Huifeng
Jiangsu Huifeng Bio Agriculture Co., Ltd. (SZSE 002496) engages in the research, development, production and sale of agrochemical products as well as in the storage and transportation of petrochemical products in China. It is a producer of key active ingredients, most notably Prochloraz, Epoxiconazole, Trinexapac, Bromoxynil, MCPA and 2,4-D, as well as Glufosinate which is to commence operations in a newly built facility. The company had total 2018 revenues in 2018 of RMB 2,519 million (approximately $370 million). Sales of agrochemicals (active ingredients and intermediates as well as formulated crop protection products) in 2018 were RMB 1,946 million (close to $300 million). The company was founded in 1989 and is headquartered in Dafeng, Jiangsu Province, China.
About Dibai
Shanghai Dibai Plant Protection Co., Ltd. is a wholly owned subsidiary of Huifeng, and with its head office in Shanghai. The company was founded in 2001 and is focused on the sale and distribution of crop protection products in China.
Contact:
Ben Cohen
Investor and Public Relations
E-mail: ir@ADAMA.com
Tel: +972 73 232 1403
Zhujun Wang
China Investor Relations
E-mail: irchina@adama.com
Tel: +86 10 5671 8110
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