16th November 2006
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Company Announcement
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Nufarm targets Andean Region with acquisition in Colombia
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Nufarm Limited announced today that it has reached agreement on terms to acquire a crop protection company in Colombia as a base for further expansion into markets in the Andean region.
Nufarm will acquire 100% of Agroquímicos Genéricos SA (Agrogen), which is based in Cali, has some 80 employees and annual sales of approximately USD15 million. The company’s manufacturing plant is located nearby.
Completion is subject to local regulatory approval and is anticipated in mid December. Terms of the transaction have not been disclosed by agreement between the parties, however the acquisition meets Nufarm’s investment return hurdles in its first full year of ownership.
Nufarm’s Managing Director, Doug Rathbone, said the Andean region (Colombia, Ecuador, Venezuela, Peru and Bolivia) represents a total crop protection market valued at almost USD600 million, with strong prospects for future growth.
Total crop protection sales in Colombia in 2004 were estimated to be just over USD300 million, making it the largest of the Andean markets. Colombia has been identified as the most attractive base country in which to form a supply hub for the region.
Agrogen has been operating for just over 10 years after being established as a supplier of generic agricultural chemicals by a local businessman and a farmers’ co-operative. The company has strong distribution relationships and some 25 product registrations, with additional registrations in train.
Existing management will remain with the business after Nufarm has assumed ownership control, with Nufarm’s small, locally based market development team being immediately integrated into the business.
Nufarm’s existing sales into Andean region markets total about $5 million. Mr Rathbone said the acquisition of Agrogen will provide a platform to build those sales to more than $40 million over the next five years.
Mr Rathbone said Nufarm’s product range is well suited to the region’s crop protection needs and – combined with Agrogen’s product portfolio – will cover 90% of the largest selling products in regional markets.
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Further information:
Robert Reis
Corporate Affairs
Phone (61 3) 9282 1177
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Anuncio Nufarm Company
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Nufarm apunta a la Region Andina invirtiendo en Colombia
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Nufarm Limited anunció hoy que ha llegado a un acuerdo para la adquisión de una compañía de protección de cultivos en Colombia como base para una posterior expansión a los mercados de la region Andina.
Nufarm adquirirá el 100% de Agroquímicos Genéricos SA (Agrogen), basada en Cali, cuenta con unos 80 empleados y ventas anuales por aproximadamente USD 15 millones . La planta de manufactura de la compañía está localizada en las cercanías de esta ciudad.
La transacción está sujeta a aprobación por las autoridades regulatorias locales y ésta se anticipa para mediados de Diciembre. Los terminos de la transacción no han sido divulgados por acuerdo entre ambas partes, no obstante la adquisición cumple los objetivos de Nufarm de retorno de la inversión en su primer año como propietario.
Doug Rathbone, Nufarm’s Managing Director, comentó que la region Andina (Colombia, Ecuador, Venezuela, Peru and Bolivia) representa un mercado total de protección de cultivos valuado en casi USD600 millones, con fuertes prospectos para futuro crecimiento.
Ventas totales en protección de cultivos en Colombia en 2004 fueron estimadas justo por encima de los USD300 millones, siendo este el mayor mercado de la region Andina. Colombia ha sido identificada como el país más atractivo para establecer una base de abastecimiento para la region.
Agrogen ha estado operando por un poco más de 10 años, como un proveedor de agroquímicos genéricos, y fue establecida por un empresario local y una cooperativa de agricultores. La compañía posee fuertes relaciones con distribuidores, cuenta con 25 productos registrados y otros registros adicionales en camino.
El gerenciamiento existente permanecerá con la compañía una vez que Nufarm asuma el control de la propiedad. La pequeña operatoria local de Nufarm, equipo dedicado al desarrollo de mercados, será inmediatamente integrada a este negocio.
Las ventas actuales de Nufarm en la region Andina totalizan unos USD 5 millones. Mr. Rathbone comentó que la adquisición de Agrogen será la plataforma para construir una venta de USD 40 millones en los proximos cinco años.
Mr. Rathbone dijo que el portafolio de productos de Nufarm se ajusta a la necesidad de protección de cultivos en la region Andina, y combinado con el portafolio de Agrogen, cubrirá más del 90% de los productos más vendidos en estos mercados.
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Nutrihealth Pty Ltd
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Nutrihealth has Australia’s most advanced breeding program in the specialty HOLL (high oleic / low linolenic) canola segment. Demand for HOLL canola is growing steadily on a global basis, with current major markets for HOLL canola oils being the United States, Canada and Japan.
In a closed loop system, Nutrihealth licenses its seed to growers, who receive a premium price for their crop, which is then sold to a crusher before being passed through to the refiner who refines, packs and markets the end product.
In 2007, Nutrihealth expects to plant some 25,000 hectares of ‘Monola’ grain.
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Canola
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Canola is a seed crop grown for the production of vegetable oil. It is the third largest field crop grown in Australia (behind wheat and barley). Canola continues to grow in significance in terms of both the value of oilseeds and total crop production. In Australia, sowings are typically 1 million to 1.4 million hectares depending on season and relative pricing of wheat v canola. Canola contibutes agronomically in the "rotation" to weed and disease control and helps with improving soil structure.
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