Adama Finalizes Combination with Sanonda

Following the closing of the combination between Adama Agricultural Solutions Ltd. and Hubei Sanonda Ltd., the combined company today announced appointments to its Board of Directors and Management, representing the culmination of the combination between the two companies.

The combined company’s shareholders approved the appointment of Yang Xingqiang, President of ChemChina, as the new Chairman of its Board, as well as the appointment of new directors including Ren Jianxin, Chairman of ChemChina, and Chen Lichtenstein, who was also appointed by the new Board as President and CEO of the combined company. Going forward, Adama’s global management team will run the combined company.

The combined company has also announced the formation of its eighth geographical business cluster, the China Cluster, to be led by An Liru, who joins Adama’s global management team as Senior Vice President. Under his leadership, the China Cluster is planned to continue expanding its commercial presence and developing its operational and R&D capabilities.

The combined company will operate under the ADAMA name and brand. The process of changing the listed entity’s name is underway, and expected to be completed in the coming months. The central functions of the combined company will continue to be run from Israel, including the company’s global R&D, registration and operations.

Through this combination the combined company returns to the public markets, becoming the first global crop protection company to be traded on the Chinese stock market. The combination is the creation, in one coordinated step, of the only integrated Global-China crop protection business, with pro forma combined 2016 sales of $3.35 billion and EBITDA of $584m. At its outset, it is the sixth largest crop protection company in the world.

At current market prices, the combined company’s equity is valued at approximately $4.7 billion, placing its pro-forma enterprise value at approximately $5.8 billion. Adama’s bonds will continue to be publicly traded on the Tel Aviv Stock Exchange.

Yang Xingqiang, Chairman of the Board said: “The combination of Adama and Sanonda is the realization of our vision – the creation of a truly global crop protection leader through the integration of Adama and our agrochemical businesses in China. The combination presents tremendous opportunities for the combined company, which is now better positioned than ever to capitalize on the potential of the China market, as well as the unique global benefits of a fully integrated operational base in the country.”

Chen Lichtenstein, President and CEO, said: “Our combination, the first of its kind among global and China businesses, is the culmination of years of hard work and partnership between ChemChina and Adama. In recent years, we have initiated commercial and operational cooperation among  ChemChina’s agrochemical entities, and we therefore reach this point with our integration well underway. We are excited to be returning to the public markets, and look forward to driving our growth and continued leadership in both the global and Chinese markets.”

The transaction, which closed on July 4, 2017, was effected through the issuance by Sanonda of approximately 1.82 billion new shares at a value of RMB 10.20 (approximately $1.54) per share, to ChemChina, in exchange for all its shares in Adama. The combined company’s shares are listed on the Shenzhen Stock Exchange, providing access to RMB- and Hong Kong Dollar-denominated capital.

Goldman Sachs Gao Hua Securities and Guotai Junan Securities served as financial advisors for the transaction, with Global Law Office acting as legal advisor.

The combined company, which will be named ADAMA, is comprised of Adama Agricultural Solutions Ltd. and Hubei Sanonda Ltd., and is one of the world’s leading crop protection companies. We strive to Create Simplicity in Agriculture – offering farmers effective products and services that simplify their lives and help them grow. With one of the most comprehensive and diversified portfolios of differentiated, quality products, our 6,600-strong team reaches farmers in over 100 countries, providing them with solutions to control weeds, insects and disease, and improve their yields. For more information, visit us at www.adama.com and follow us on Twitter® at @AdamaAgri.

 

Topics: , ,

Agrichemicals

Signs-Agriculture
Agrichemicals

Opinion: Why the Crop Protection Industry Needs Strategic Vision

The crop protection industry faces a dilemma. In the uncertain and globally competitive world of crop protection, focus has primarily

Agrichemicals

CAC Crop Protection Show Continues to Expand

China’s agrichemical industry continues to deal with strict environmental regulations, which have impacted sourcing around the world. CAC 2018 gives

Agrichemicals

Global Crop Protection Market: Overcoming Challenges and Finding Opportunity in 2018

The end of the old year and start of the new is a natural time to reflect on where we’ve

Agrichemicals

ADAMA’s Global R&D Center Launches Operations in Nanjing

Global crop protection group ADAMA, the combination of Adama Agricultural Solutions Ltd. and Hubei Sanonda Co., Ltd., has inaugurated its

Insecticides

Bayer Inaugurates New Greenhouse for Insecticide Research

Bayer is aiming to consolidate its leading position in the global pest control market. To this end, the company has

Agrichemicals

Cropchem Doubles Portfolio with Seven New Formulations in 2017

After obtaining the registration of Meson 480 SC (Mesotrione 480 SC) in December 2017, Cropchem closed the year with seven

Agrichemicals

Update Your Listing: The AgriBusiness Global Sourcing Network

We are beginning to update our database for the 2018 AgriBusiness Global® Sourcing Directory. Last year’s directory included more than

Herbicides

EPA: Monsanto’s Glyphosate Likely Not Carcinogenic to People

The U.S. Environmental Protection Agency has said that glyphosate, the key ingredient in Monsanto Co.’s top-selling weedkiller Roundup, is not

Rice
Agrichemicals

Agrichemicals: India Has Room to Grow

India is growing and it is growing at a fast pace. The growth has been seen on every front —

Agrichemicals

Court Cancels Publicly Held Syngenta Shares

Syngenta has announced that the Appellate Court Basel-City (Appellationsgericht Basel-Stadt) has cancelled all publicly held registered shares of Syngenta AG.

Agrichemicals

ADAMA Opens New Global Formulation Center in Jiangsu Province

Global crop protection group ADAMA, the combination of Adama Agricultural Solutions Ltd. and Hubei Sanonda Co., Ltd., has announced that

Agrichemicals

Eurofins Finalizes Acquisition of EAG Laboratories

Eurofins Scientific, parent company to Eurofins Agroscience Services Group, has announced the successful closing of the transaction to acquire EAG

Agrichemicals

Syngenta May Start Local Production of Crop Protection in Russia

Switzerland’s Syngenta is considering setting up local production facilities of crop protection products in Russia rather than relying on importing

Herbicides

Another U.S. State Announces Restrictions on Using Herbicide Dicamba

MINNEAPOLIS (AP) — Minnesota announced restrictions Tuesday on how farmers can use the herbicide dicamba in 2018, responding to complaints

Agrichemicals

Slideshow: AgriBusiness Global Hosts Trade Summit Southeast Asia

AgriBusiness Global hosted its Trade Summit Southeast Asia from Dec. 5-6 in Jakarta, Indonesia at the J S Luwansa Hotel.

Agrichemicals

PMFAI Hosts 12th Annual Conference & Exhibition

The 12th International Crop Science Conference & Exhibition (ICSCE) organized by the Pesticides Manufacturers & Formulators Association of India (PMFAI)

Herbicides

Dicamba: Monsanto Moves to Stop Arkansas Ban

Little Rock, AR (AP) — Monsanto asked a judge Tuesday to prevent Arkansas from enforcing a proposal going before lawmakers

Herbicides

L-Glufosinate Process Patent Issued to AgriMetis

AgriMetis, LLC has announced that its patent application, drawn to methods of making its broad-spectrum herbicide product, L-Glufosinate (Glu-L), has

Bayer-Website
Agrichemicals

New Bayer Transparency Website Launched

Bayer has launched its new transparency website (https://cropscience-transparency.bayer.com), designed to enable access to scientific data needed for the evaluation of

Latest News

Biostimulants

Sigma Agriscience Acquires Agricultural Solutions Company AM-AG

Sigma Agriscience, a manufacturer of granular biofertilizers and biostimulants, has acquired a controlling interest in AM-AG, an international marketer and

Africa/Middle East

Kenya Dairy Industry Sheds Light on Market Challenges, Opportunities

In December, I had the privilege to serve as a volunteer consultant with the USAID Farmer-to-Farmer (F2F) program in Kenya.

Agrichemicals

Opinion: Why the Crop Protection Industry Needs Strategic Vision

The crop protection industry faces a dilemma. In the uncertain and globally competitive world of crop protection, focus has primarily

NPK

Sustainability at The Mosaic Company: Former CEO Shares Insight into How They Did It

Leading an organization today requires navigating the pushes and pulls of multiple stakeholders: generating shareholder returns, delivering value to customers,

Africa/Middle East

Eastern African Nations Move to Harmonize Fertilizer Regulations

Eastern Africa countries are working to harmonize the region’s fertilizer market, a move that could improve not only demand for