By completing the second and final phase of their previously announced transaction, ADAMA has closed the acquisition of a 51% stake in Huifengs key crop protection synthesis and formulation facilities
• Phase I: As previously announced, in December 2020, ADAMA acquired a 51% stake in Shanghai Dibai Plant Protection Co Ltd ("Dibai", soon to be renamed ADAMA Huifeng (Shanghai) Agricultural Technology Co., Ltd.), a wholly-owned subsidiary of Huifeng focused on the sale and distribution of key formulated crop protection products in China.
• Phase II: In the transaction that has now been completed, ADAMA has acquired a 51% stake in a recently established, wholly-owned subsidiary of Huifeng, ADAMA Huifeng (Jiangsu) Co., Ltd, created to incorporate Huifeng's key crop protection synthesis and formulation facilities.
• Closing of Phase II follows the satisfaction or waiver of the relevant Closing conditions, including the obtaining of the required regulatory and other corporate approvals as well as the resumption of production at Huifeng's key production facilities.
Following the completion of both Phases I and II, ADAMA now owns 51% of the equity in both Dibai and ADAMA Huifeng (Jiangsu) Co., Ltd., providing ADAMA with a majority stake in one of China's leading crop protection manufacturers, and significantly bolstering ADAMA's commercial presence in the China crop protection market. Through this transaction, ADAMA gains access to backward-integrated and competitive positions in key global molecules, expected to drive significant growth through ADAMA's worldwide market reach.
An Liru, senior vice-president, China for ADAMA, said, “With the completion of the acquisition of the majority stakes in both Huifeng's commercial and operational activities, we are better positioned than ever to succeed in achieving our growth ambitions in China and globally, with significantly bolstered commercial reach in China and competitive operational capabilities to support our global business. We welcome the Huifeng team to the ADAMA family, and look forward to further realising our vision of creating a leading crop protection business in China.”
