Grupa Azoty SA, Tarnów, said it has concluded an agreement with Goat Netherlands BV, an entity of London-headquartered private equity firm XIO Group, for the acquisition of 100 percent of the shares of Germany’s Goat TopCo GmbH, which controls the companies of specialty fertilizer and biostimulant manufacturer Münster-based Compo Expert Group.
Grupa Azoty said the purchase price for 100 percent of the shares of the Compo Expert Group will not be higher than €235 million (approximately $273 million), and will be financed entirely with credit lines available to the Polish chemicals and fertilizer group.
Compo Expert’s key production assets are located in Krefeld, Germany, and Vall d’Uixo, Spain. Its high-value-added specialty fertilizers for professional use are sold in markets in Europe, Asia, the Americas, and South Africa. Compo Expert is a former business of K+S (GM June 27, 2011).
“With the acquisition of the shares in the Compo Expert group, Grupa Azoty will further strengthen its international position among the leading solutions providers for the agro market. Entering the area of specialty fertilizers is an important step in the group’s access to innovative technologies and unique know-how,” said Grupa Azoty President of the Management Board Wojciech Wardacki.
In February, Grupa Azoty disclosed that it had submitted a non-binding indicative offer to acquire 100 percent of the shares of Compo Expert (GM Feb. 23, p. 27; March 23, p. 31). Last week, the Polish company revealed that it was holding talks over potential takeovers of three foreign companies, including one in Germany, and that it may finalize one “significant” transaction by year-end, according to a PAP Biznes report, citing the group’s Vice President of Finance, Paweł Łapiński (GM Aug. 31, p. 1).
The transaction will be finalised after the approval of Grupa Azoty shareholders at an extraordinary general meeting and receipt of consent from relevant merger control authorities in certain countries of operation. Closing is not expected earlier than the fourth quarter of 2018 and no later than the first quarter of 2019.