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Platform Specialty Products Closes Acquisition of Arysta For $3.5 Billion
Feb. 18, 2015
Platform Specialty Products Corporation
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United States
The closing of this acquisition marks Platform's third acquisition within the crop protection operating segment after the acquisitions of Agriphar on October 1, 2014 and Chemtura AgroSolutions ("CAS") on November 3, 2014. Through the Arysta, CAS and Agriphar businesses, Platform has an operating agrochemicals footprint in more than 100 countries and expects to benefit from a global supply chain that should allow operational efficiencies to become realized almost immediately. Platform expects to realize in excess of $65 million in synergies from the combination of these businesses over the next three years. Upon closing of the acquisition, Arysta's President and Chief Executive Officer, Wayne Hewett, became Platform's President, leading the agrochemical businesses and overseeing Platform's ongoing operations.
Martin E. Franklin, Platform's Founder and Chairman, commented, "The thesis behind focusing on the best-in-class 'Asset-Lite, High-Touch' businesses in the specialty chemical sector is progressing beyond expectations. We are assembling a world-class management organization and continue to see significant value creating opportunities ahead."
Daniel H. Leever, Platform's Chief Executive Officer, said, "Platform was founded with the goal of bringing together a portfolio of industry-leading, best-in-class specialty chemical companies. Our cadence in working toward this vision has been swift, and the successful completion of the Arysta acquisition—our largest to date—provides us with a more diverse offering, a significantly expanded geographic footprint, and greater earnings potential. Importantly, along with increased size and scale, we are also gaining a deeply skilled and experienced team. We expect that these enhancements to our leadership infrastructure will provide for successful integration and ongoing execution as we look to seize new and exciting opportunities in 2015 and beyond."
Wayne Hewett, Platform's new President, stated, "With the close of this acquisition, we are eager to capitalize on the unique growth opportunities that will emerge from having Arysta, CAS, and Agriphar under one umbrella. Our newly-created AgroSolutions segment, which is expected to uniformly operate under the Arysta LifeScience tradename, possesses a strong bias toward high-growth areas, both in terms of product lines and geographic presence, and with an industry-leading portfolio of active ingredients and registrations, we believe we are ideally positioned to continue developing solutions that will address the evolving demands of farmers around the world."
Simultaneously with the closing of the Arysta acquisition, Platform amended its credit agreement and borrowed an additional $500 million (less original issue discount of 1%) through an incremental term loan denominated in U.S. dollars, €83 million (less original issue discount of 2%) through an increase to its existing term loan facility denominated in euros, and $150 million through an increase to its existing revolving credit facilities, which borrowings were used to fund a portion of the cash consideration for the Arysta acquisition. Certain of Platform's newly acquired and existing domestic subsidiaries became guarantors and pledged collateral under the credit agreement in connection with this amendment.
The Arysta acquisition will not have any impact on Platform's status as a U.S.-domiciled company.
Source: Platform Specialty Products
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