Aug. 6, 2018
On July 20, 2018, Platform entered into a definitive agreement to sell Platform's Agricultural Solutions business, which consists of Arysta LifeScience Inc. and its subsidiaries, to UPL Corporation Ltd. for $4.2 billion in cash, subject to adjustments. The transaction is expected to close in late 2018 or early 2019, subject to customary closing conditions and regulatory approvals.
Platform’s CEO Rakesh Sachdev stated, “We are pleased to announce our second quarter financial results that demonstrated another quarter of strong sales and earnings growth. Both the Agricultural Solutions and the Performance Solutions businesses achieved solid organic sales growth in line with the higher-end of our long-term target range. Once again this quarter, we achieved positive global organic growth in each of Performance Solutions’ primary end markets with strong growth in our Industrial and Offshore business lines. The Agricultural Solutions segment saw double digit sales growth fueled largely by growth in the Latin and North America regions. From an adjusted EBITDA perspective, our Performance Solutions segment demonstrated healthy margin improvement, while our Agricultural Solutions business continued to successfully mitigate an inflationary raw material environment as it grew sales. Overall, we believe these results demonstrate the health of our businesses, and we are very pleased with the continued momentum in both of our segments.”
“With the recently announced agreement to sell our Agricultural Solutions segment, Arysta LifeScience, the second half of this year will be an important time for Platform as we prepare for the separation and start a new chapter with a more focused and restructured company. For our Performance Solutions segment, which will form the foundation of our new company going forward, this means capitalizing on the supportive macro environment we see in most of our markets and preparing it for its next phase as Element Solutions Inc. As we recently announced, we expect Element Solutions, excluding Arysta, to have an annualized adjusted EBITDA in the range of $450 million to $470 million, after realizing the anticipated benefit of an estimated $25 million in annualized run-rate cost savings we expect to achieve in 2019. Achieving these financial and operating results and finalizing our restructuring plans are key priorities for the rest of the year.”
Sachdev continued, “For Arysta, we believe our success should be measured by an effective and efficient transition that will position the combination of Arysta and UPL as a strong global crop protection company. Our planning for the future is already underway, and we are working expeditiously to complete regulatory filings to ensure a timely closing of the transaction. At the same time, we will remain focused on delivering on our financial commitments for both of our businesses as we implement a successful separation.”
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