Makhteshim Agan Industries Ltd. (TASE: MAIN) has acquired two companies in Eastern Europe for $20 million altogether. The Israeli agrochemicals maker acquired 90% of Rokita Agro SA, a Polish agrochemical affiliate of Germany's PCC SE, and the Serbia agrochemical distributor Magan Yu.
Makhteshim Agan said that the acquisitions would add a strategic product and expand the company's presence in the rapidly growing Central European market. It expects to close the deals in early 2009.
Rokita Agro has $50 million in annual sales. Its main product, 2,4-D, is a strategic global herbicide that has experienced consistent growth in demand in recent years, which is expected to intensify.
Makhteshim Agan said that 2,4-D complements its own herbicide product line, and expands its business in Poland and Eastern Europe, which is experiencing strong growth and attractive margins as its agricultural sector develops. The acquisition also diversifies and adds another synthesis, formulation, and packaging facility to the company's manufacturing infrastructure. Rokita Agro can become a logistical hub for the whole company. Makhteshim Agan is acquiring an addition 15,000 square meters for further expansion.
Makhteshim Agan said that Magan Yu has $15 million in annual sales, and that the acquisition will increase the company's distribution channels and improve profitability in the growing Serbian market.
Makhteshim Agan is a unit of Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH), held through Discount Investment Corporation (TASE: DISI) subsidiary Koor Industries Ltd. (TASE:KOR). Makhteshim Agan rose 2% in morning trading to NIS 15.29.
Published by Globes [online], Israel business news - www.globes-online.com - on December 11, 2008
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