Auriga Confirms Cheminova For Sale
4 August 2014 Danish chemical giant Auriga Industries A/S confirmed that it is investigating a potential sale of its crop protection company Cheminova, as consolidation continues to sweep the agrochemical industry.
“Discussions with several parties regarding a potential transaction are currently underway, and Auriga has engaged advisors to assist in the process,” the company said in a statement.
Auriga said that “there can be no certainty about the outcome of the discussions, the type of transaction or whether a transaction will occur at all,” and noted it will make further announcements if and when it is deemed appropriate.
Financial institution J P Morgan was hired by the company for the purpose, Reuters reported. Private equity firms Bain, CVC and EQT, and ChemChina subsidiary Adama Agricultural Solutions are among the potential bidders, the newswire added.
The potential sale follows a move by specialty chemicals company Chemtura Corp. in April to divest its agrochemicals business to Florida-based Platform Products Corp. for about $1 billion. Monsanto also had explored a takeover of Syngenta, which would have allowed the U.S. company to move its tax location to Switzerland, but the deal fizzled out, according to widespread reports earlier this summer.
Cheminova products are sold in more than 100 countries, and 98% of sales are generated outside of Denmark. In 2013, the group posted about $1.2 billion in sales.
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