Minrav Holdings Ltd. (TASE: MNRV) has sold its wholly-owned subsidiary, bio-pesticide developer Agrogreen Ltd., for NIS 120 million. Minrav did not disclose the name of the buyer.
Agrogreen, founded in 1997, develops and produces environmentally friendly biological pesticides and microbial products for pest control. The company's products are intended as alternative to chemical pesticides, some of which damage the environment. The company has two commercial products: BioNem, a bio-nematicide for the deduction nematode worm populations and root infestations in the soil that is based on Bacillus firmus; and Shemer, a biofungicide against a wide range of rots that is based on Metschnikowia frucitcola.
Minrav will report a pretax capital gain of NIS 65 million when the sale is closed in three months, and a second capital gain of NIS 55 million in four years, subject to Agrogreen meeting certain milestones. Some of these milestones are contingent on the company obtaining regulatory approval for its products in various countries.
Minrav will have the right for several years from the launch of Agrogreen products by the buyer for payments on future product sales. These amounts cannot be estimated at this time.
Minrav chairman Avraham Kuznitzky noted Agrogreen's success in developing products that help the environment and public health. "Agrogreen has been able to develop and patent products, and is in the process of obtaining licenses for the use of its products in several countries. The sale of the company's activity to a global leader was made as a large and well-known company was needed for massive marketing and distribution of the product worldwide," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on January 21, 2009
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