United Phosphorus (UPL) further strengthened its presence in Latin America by acquiring Evofarms group, its first acquisition in the Andean region.
This is the company’s first buy in the Andean regionMUMBAI: United Phosphorus (UPL) further strengthened its presence in Latin America by acquiring Evofarms group, its first acquisition in the Andean region.
UPL announced on Monday that it has bought a 100% stake in Evofarms through its subsidiary.
Evofarms is a major marketing company of generic products in the crop protection industry and is headquartered in Bogota, Colombia. The share purchase includes all stocks, product registrations and all other property rights associated with the business of Evofarms.
The company declined to provide the cost of acquisition. Evofarms has several product registrations in Colombia and has a distribution network covering over 100 customers.
It is an all-cash offer and UPL will fund this through its cash accrual. Rajju Shroff, chairman, UPL, said: “Like we have done in the past with our acquisitions, we will quickly double the turnover of Evofarms and make it more profitable.”
UPL had been actively pursuing opportunities for growth in Latin America, after considerable growth in the US, Argentina, Europe, and in India. Evofarms represents UPL’s first acquisition in the Andean region, which is an interesting and fast growing agrochemical market.
This is the second acquisition in Latin America in the current fiscal year after Icona in July 2007.
The acquisition of Evofarms is in line with UPL’s strategy to aggressively grow its business globally, both organically and through acquisitions.
The company hopes to close this financial year with a turnover of about Rs 3,300 crore, more than 30% of its previous year. “We took some three months to study the Columbian company,” the company said.
This is also UPL’s third acquisition in the fiscal year, following its acquisition of the global rights of two tin compounds from DuPont and Icona in Argentina.
Through acquisitions, strategic alliances and network of subsidiaries, UPL has built a marketing network across the globe and its international revenues account for over 70% of its total revenue. It exports to over 100 countries, the primary markets being Europe and North America with high expectations of growth in Latin America.
UPL has over 3100 employees and has 24 operating plants in various geographies over the world, most of them are ISO compliant to the highest standards of Quality, Safety, Environment and Occupational Health.
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