Chinese company Sichuan Hebang Corporpation, listed on the Shanghai Stock Exchange at a $3.6 billion market cap, is acquiring control of private Israeli agrichemicals company Stockton. Hebang will invest $90 million for 51% of Stockton's shares, reflecting a $177 million company value. Hebang, which deals in materials and agrichemicals, is making its first investment outside China. Closing of the deal is expected within 90 days, subject to regulatory approval in China.
Stockton, whose headquarters are located in Petah Tikva, was founded in 1994 by former Makhteshim Agan executive Peter Tirosh. It is currently managed by CEO Ziv Tirosh. Stockton has developed an environmentally friendly vegetable extract-based pesticide, Timorex Gold, which kills fungi. The product, sold in 20 countries, is used as a pesticide for a large number of crops, including rice, coffee, tomatoes, bananas, etc. The company also recently received a license to sell the product in the US.
Under Stockton's agreement with the Chinese company, the investment is designed to support Stockton's growth as a leading global company in environmentally friendly pesticides. Ziv Tirosh said that among other things, the company is in regulatory approval processes in China, and cooperation with Hebang has added value for penetration of the Asian market in general.
Under the agreement Stockton will continue to operate as an Israeli company, without any management changes.
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2015
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