INSUBCONTINENT EXCLUSIVE:
MUMBAI: Crystal Crop Protection, backed by PE firm Everstone Capital, is close to acquiring some key brands of Philadelphia-based chemicals
maker FMC Corporation ahead of its 1,000-crore initial public offer (IPO), marking the company’s third such purchase in 2018.
The
portfolio of NYSE-listed FMC Corp
brands that are sought to be acquired would include Furadan, Splendour, Metcil and Affinity Force, sources told ET
The acquisition will help the Indian RD-based crop protection manufacturing and marketing company strengthen its insecticide and herbicide
portfolio.
Crystal Crop declined to comment on the acquisition
It recently received final observations from SEBI regarding the DRHP it filed for raising 1,000 crore via an IPO, comprising a fresh issue
of up to 545 crore and an offer for sale of up to 455 crore.
According to the DRHP, net proceeds of the IPO will be utilised toward
prepayment/ repayment of certain working capital facilities, acquisitions, and other strategic initiatives and general corporate
purposes.
The latest acquisition is expected to add around 15 per cent to its branded retail business, say sources.
“It will make inroads
into paddy, maize and sugarcane (Furadan and Furadan ultra), while Affinity Force will give an edge in the wheat segment as it controls some
of the most difficult weeds
Besides this, Splendour is expected to add value to the tea market,” added a second source familiar with the development.
This is Crystal
Crop’s third acquisition in 2018
The first was a chemicals plant from Cytec India Specialty Chemicals Materials, and the second the Indian sorghum, pearl millet and fodder
seeds business from Syngenta India
It signed an agreement with Germany’s BASF SE in 2016 to acquire the brand Bavistin and bought the Hyderabad-based Rohini Seeds and Rohini
Bioseeds and Agritech in 2011 to enter the seeds market.
Crystal Crop’s products cater to the entire lifecycle of crops — from sowing to
