UPL makes largest foreign acquisition

Mumbai, July 20 

UPL (earlier known as United Phosphates) on Friday announced the acquisition of Arysta Life Science Inc for $4.2 billion, which will enhance its position as a global leader in agriculture solutions market and will make it a $5 billion entity in combined sales.

UPL vice-chairman Vikram Shroff said the all-cash deal agreement is between UPL Corporation, the international arm of UPL, and the NYSE-listed Platform Specialty Products Corporation to acquire Arysta Life Science Inc and its subsidiaries. Arysta Life Science is a global provider of innovative crop protection solutions, including bio solutions and seed treatment.

For the all-cash $4.2-billion deal, UPL has partnered with a subsidiary of the Abu Dhabi Investment Authority and TPG Capital.

He said it will help UPL log a $1 billion pre-tax profit and over 20% operating margin due to the synergies between the two companies in terms of geographies, crops and products, manufacturing and R&D capabilities. “The acquisition is expected to drive annual synergies of over $200 million,” Shroff said. Transaction provides a compelling value proposition and underscores UPL’s “farmer first” mission to continue the transformation of UPL into a leading crop solutions company, he said. — PTI