Riyadh-based SABIC Agri-Nutrients Co. Ltd. has completed the procedures to acquire 49% of the share capital of Dubai-based agri-nutrient blender and distributor ETG Inputs Holdco Ltd., the Saudi company announced in an April 10 filing to Saudi’s Tadawul.
SABIC Agri-Nutrients and ETG Inputs Holdco’s parent company, ETC Group, also based in Dubai, signed a binding transaction for the stake acquisition early last year (GM Jan. 13, 2022). The Saudi firm at the time said it agreed to pay an enterprise value of $320 million for the shareholding, based on cash free, debt free, and changes in the working capital adjustment that would be determined at transaction completion.
It did not disclose the final transaction value in its latest filing, but said it expects the financial impact of the deal to appear during the second quarter of the fiscal year ended Dec. 31, 2023. The company is financing the acquisition using its own resources.
ETG owns more than 350 distribution centers across sub-Saharan Africa, and blends and distributes specialized fertilizers and agro chemicals. SABIC Agri-Nutrients said the acquisition of the ETG stake is part of its strategy to integrate the value chain to include blending and distribution of agri-nutrients in global markets and move closer to farmers and end customers.