Speciality chemicals company Crystal Crop Protection is close to acquiring key insecticide and fungicide brands of Syngenta AG, said people aware of the development.
If the deal materialises, it will mark Everstone Capital-backed Crystal Crop’s fourth acquisition in 2018. The Delhi-headquartered company is planning to raise Rs 1,000 crore through an initial public offering.
The portfolio of Swiss-based Syngenta brands that are sought to be acquired include Proclaim, Tilt and Blue Copper, the persons cited earlier told ET. The acquisition will help the Indian R&D-based crop protection manufacturing and marketing company to strengthen its crop protection portfolio. In India, Syngenta is known for its high-quality crop protection products.
This acquisition from Syngenta will enhance Crystal’s penetration in the pulses, cotton, rice, wheat, vegetable and grapes markets in India. Further, the inclusion of these brands will help to strengthen its portfolio and provide best crop protection solution to farmers and thus increase their farm productivity,” another person familiar with the matter said.
The company recently received final observations from markets regulator Sebi regarding the DRHP it filed for raising Rs 1,000 crore via an IPO, comprising a fresh issue of up to Rs 545 crore and an offer for sale of up to Rs 455 crore.
According to the draft red herring prospectus (DRHP), net proceeds of the IPO will be utilised toward prepayment/ repayment of certain working capital facilities, acquisitions, and other strategic initiatives and general corporate purposes.
This will be Crystal Crop’s fourth acquisition in 2018. Earlier this year, it had acquired a chemical plant from Cytec India Specialty Chemicals & Materials, and the Indian sorghum, pearl millet and fodder seeds business of Syngenta India. It also acquired four brands (Furadan, Splendour, Affinity Force and Metcil) from Philadelphia-based chemicals maker FMC Corporation.
In 2016, the company had signed an agreement with Germany’s BASF SE to acquire the brand Bavistin. In 2011, it had bought Hyderabad-based Rohini Seeds and Rohini Bioseeds and Agritech to enter the seeds market.