Rainbow Acquires Stake in Green Crop

Jackie Pucci Posted by Jackie Pucci|21 July 2015

Chinese post-patent crop protection company Rainbow and Green Crop’s shareholder signed an equity purchase agreement under which Green Crop will set up a joint venture on June 29, and finish the recent share transfer. Rainbow is the major shareholder of Green Crop.

Green Crop was founded in end of 2008 as a local marketing company in Argentina, and owns more than 20 registrations with an office in Buenos Aires. In 2013 Green Crop acquired a formulation plant, Dicopack, and then also started to offer formulation services to local agrochemical companies. This formulation plant is located in an industrial park, Gualeguaychu, Entre Rios, which is well-positioned to export to Uruguay, Paraguay and Brazil.

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After this deal, Rainbow also brings its advance formulation technology, R&D service and quality control policy experience to Green Crops. Green Crop will stop its brand distribution business and focus its operations as an independent formulation plant offering professional and higher quality agrochemical formulation services to the Mercosur region.

Based on the agreement, Green Crop will have a capital increase for further investment in:

  1. New and higher standard laboratory for quality control;
  2. Upgrade current production line to be better organized;
  3. Increase production capacity for the current production line;
  4. More new production lines for more formulation types such as SC, WG, CS.

Green Crop will focus on formulation R&D, quality and cost control, with a goal of being a world-class too manufacturer capable of manufacturing an array of formulations, and to be the partner of choice for clients.

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Before this investment, Rainbow had already made an investment in a formulation plant in Panama. The Panama plant will mainly focus to satisfy Rainbow’s demand in the Central American, Caribbean and Andean region. Green Crop will support Rainbow’s demand for the rest of South American region. This investment helps to improve Rainbow’s supply chain, logistics and cost position.

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