Nufarm acquires rest of Agripec

Agricultural chemicals firm Nufarm Ltd has taken full control of Brazilian crop protection group Agripec Quimica e Farmaceutica SA after acquiring a further 50.1 per cent stake in the company.
Nufarm, which bought 49.9 per cent of Agripec in 2004, will pay about $210 million for the rest of the shares, in a deal to be funded by debt.
Nufarm managing director Doug Rathbone said Brazil was one of the world's most exciting agricultural growth markets, and a fully-owned Agripec would be a platform for Nufarm to develop new business opportunities in South America.
"Given the confidence relating to recovery and sustained growth in the Brazil farm sector, and given our intentions to look at other opportunities in that market, the time was right to step up and acquire the balance of Agripec," Mr Rathbone said.
The existing major shareholder and president of Agripec, Beto Studart, will relinquish his position on completion of the transaction, due mid-August.
Nufarm said at the time that currency movements had resulted in a significant tightening of credit in the Brazilian farm sector.
Agripec contributed $13.7 million to group earnings, compared to $18.3 million last year.
But Mr Rathbone anticipated a stronger performance in Brazil due a more stable currency, stronger commodity prices and a sugar cane market boom.
For more information click here and read the article in The Age (AU) website