China: Crop Protection Adama and Anpon to Sign Purchase Agreement Soon
Adama aims to acquire Anpon as the firm plays an important part of the former company’s global crop protection market. Anpon also adds significant synthesis and formulation capabilities to the company’s China operational hub.
Beijing/China – Leading global crop protection company Adama has recently reported that it is making significant progress towards the potential cash acquisition of Jiangsu Anpon Electrochemical Co. (Anpon). With sales of approximately 234 million dollars in 2017, Anpon is a fully backward-integrated manufacturer of key active ingredients used in crop protection markets worldwide. Its most notable ingredients are Ethephon, Pymetrozine and Buprofezin, as well as intermediates such as chlor-alkali and other products, with advanced membrane production technology. Anpon is wholly-owned by Chem China, Adama’s controlling shareholder.
In recent years, Adama benefited from Anpon’s strong manufacturing position, enhancing its portfolio with products and differentiated mixtures based on Anpon’s molecules. The company has been able to build market-leading positions in major markets such as the US, India and Australia. In China, Anpon brings a portfolio of product registrations to the Adama product offering, as well as a domestic sales force.
Anpon is fast becoming a key part of Adama’s global operations, adding significant synthesis and formulation capabilities to the company’s China operational hub. Anpon is located adjacent to Adama’s new global formulation facility, facilitating robust and continuous exchange of expertise and knowledge-sharing between the teams. Work at Adama’s state-of-the art R&D facility in Nanjing is resulting in major process improvements in the Anpon production processes.
The parties have reached initial understandings on the intended transaction and are now working towards signing of a definitive purchase agreement. Any such agreement will be subject to the requisite corporate approval procedures as well as customary closing conditions, including the receipt of all required regulatory approvals. No financial details have been disclosed at this stage.