Agricultural input companies Albaugh LLC, Ankeny, Iowa, and Rotam AgroSciences Ltd., Hong Kong, which is publicly listed on the Taiwan Stock Exchange, announced on Dec. 21 that they have entered into an agreement under which Albaugh will acquire all outstanding shares in Rotam through a merger between the holding company of Rotam and an entity in the Albaugh group of companies.
The parties have agreed on an all-cash transaction with a consideration of NTD 26.23 per share for all issued and outstanding shares in Rotam corresponding to a total consideration of approximately US$197.5 million net of cash and debt at current exchange rates, representing a 73 percent premium over the average closing price of Rotam over the past 12 months.
The parties said the combination of the businesses will create a leading global crop protection company with total sales exceeding $2 billion and multiple areas of strength. In addition to crop protection products, Rotam is also involved in plant nutrient products, including organic, inorganic, slow release, and micronutrients. Albaugh also does plant growth regulators.
“With this acquisition, Albaugh becomes a broader, better balanced, and stronger resourced company,” said Kurt Pedersen Kaalund, Albaugh Group CEO. “The business will become a truly global business with operations also in the China/Asia/Pacific region; new markets in the Americas and Europe, Middle East, and Africa; and stronger positions in key existing Albaugh markets in USA, Argentina, Brazil, and Mexico.
“The product portfolios are largely complementary, with Albaugh having strong positions in proven core herbicides and Rotam having a highly differentiated portfolio with relatively higher share of insecticides and fungicides,” he continued. “The addition of manufacturing facilities in China and India, and strong competencies and resources in research and development, will be key to the successful future development and growth of the business.”
The transaction has been unanimously approved by the Boards of Albaugh and Rotam and is subject to approval of Rotam’s general shareholders meeting scheduled for Feb. 8, 2022. The merger is expected to close thereafter subject to customary procedures and regulatory approvals.
Albaugh is a privately-owned U.S. limited liability company founded by Dennis Albaugh in 1979. Albaugh operates multi-functional plant sites in St. Joseph, Mo.; at Pilar, San Nicolás and Rio Tercero in Argentina; at Resende, Brazil; in Chihuahua, Mexico; and in Rače, Slovenia.