ADAMA Acquiring Majority Stake in Huifeng’s Crop Protection Synthesis and Formulation Facilities

By PR Newswire|29 October 2020
Adama Huifeng deal

Signing ceremony was held today in Dafeng, Jiangsu Province, China, in the presence of representatives from ChemChina, ADAMA, Syngenta Group, and officials from Yancheng City Government as well as Dafeng District Government.

ADAMA Ltd. and Jiangsu Huifeng Bio Agriculture Co., Ltd. have announced they have entered into an agreement in terms of which ADAMA will acquire a majority stake in the vast majority of Huifeng’s synthesis and formulation facilities.

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Transaction Overview:

  • Phase I: As previously announced in November 2019, ADAMA will acquire a 50% stake in Shanghai Dibai Plant Protection Co., Ltd., a wholly-owned subsidiary of Huifeng focused on the sale and distribution of key formulated crop protection products in China; Closing of Phase I is expected to occur in the coming weeks subject to customary approvals and Closing conditions.
  • Phase II: Under the agreement now executed, ADAMA will acquire a 51% equity stake in Jiangsu Kelinong Co., Ltd., a newly established, wholly-owned subsidiary of Huifeng, to which Huifeng is to transfer its key crop protection synthesis and formulation facilities; and an additional 1% in Dibai.

Following the completion of these transactions, ADAMA will hold 51% of the equity in both Kelinong and Dibai, providing ADAMA with a majority stake in one of China’s leading crop protection manufacturers, and significantly bolstering ADAMA’s commercial presence in the China crop protection market.

The total cash consideration for both phases of the transaction is approximately RMB 1,224 million (approximately $175 million).

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Closing of Phase II is subject to customary closing conditions, including regulatory and other corporate approvals, and is further subject to full resumption of production at the relevant facilities of Huifeng. Huifeng has made significant progress in the rectification of its environmental issues and is in the process of obtaining approvals to resume production activities.

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