Apr. 10, 2018
Elders Indonesia said on Monday that it has agreed to acquire Titan Ag, an Australian-based producer and supplier of crop protection and animal health chemicals and fertiliser, which has been selling its products in Australia through Elders.
Elders is also set to buy Kerr & Co Livestock, the largest privately owned independent livestock business in south-west Victoria, which handled about 416,000 sheep and 16,000 cattle last financial year.
Mark Allison, Elders chief executive, said Titan represents an attractive opportunity to extend Elders' supply chain for agricultural chemicals.
"Titan is a quality brand that has the potential to significantly grow sales of its product range," he said.
Titan is expected to generate earnings of $6.5 million to $7.5 million in its first full year under Elders' ownership.
Mr Allison said the acquisition of Kerr & Co Livestock will enable Elders to increase its agency business in a highly valuable livestock region of Australia.
Elders has also decided to sell its underperforming feedlot and processing assets in Indonesia.
Elders Indonesia operates a feedlot with a capacity of about 8,200 head, as well as an abattoir.
Elders has decided to sell the assets, following a performance review which showed that they were performing below the required return on capital.