Afgri Hands Over Tsunami Companies To Arysta
3 February 2010 CENTURION, South Africa — Agricultural business Afgri announced the disposal of selected assets and business of Tsunami Companies, including Tsunami Plant Protection and Tsunami Crop Care, to Oninamix trading as Arysta LifeScience South Africa, according to Business Reports. Arysta LifeScience SA is a subsidiary of Arysta LifeScience Corporation headquartered in Tokyo, Japan, which is the world’s largest privately held crop protection and life science company with 2008 revenues of US$13.5 billion, Afrgi said.
The transaction is subject to Competition Commission approval and the fulfilment of other conditions. Afgri said it did not require shareholder approval for this transaction.
“As part of an intensive strategic focus and re-alignment of the Afgri businesses towards being an integrated grain value chain, Afgri embarked on a process of exiting non-core businesses,” said Chris Venter, CEO of Afgri. “The business of the Tsunami Companies, a local manufacturer, importer and distributor of crop protection products in southern Africa are not part of Afgri’s core business.”
The transaction is to be implemented in two phases. During the first phase all of the business and assets, other than formulation assets and operations, are to be transferred at closing following the fulfilment of the conditions precedent. The second phase, involving the transfer of the remaining formulation assets and operations, would occur after the specified post-closing conditions have been met.
“The management philosophy adopted by Arysta LifeScience will be in the best interest of the customers of the Tsunami Companies whilst Afgri would be able to apply the proceeds towards the reduction of working capital of and potential acquisitions for the Afgri Group,” Venter added.
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