UPL completed the purchase of the Costa Rican agrochemical company, Industrias Bioquim Centroamericana Sociedad Anonima (IBC), through its subsidiary, UPL Costa Rica.
UPL informed the National Stock Exchange of India on 21st November, 2018, about a definitive agreement to acquire shares in IBC, as well as other group companies in the Caribbean and Central America, though direct acquisition or acquisition through subsidiaries.
In another communication with the exchange on 28th June, 2019, UPL reported that the transaction was completed on 27th June, 2019.
In a press statement on 10th July released in Costa Rica, the company announced that the transaction was completed after various negotiations that began in 2018, noting the positive response of Costa Rican regulatory authorities.
The company preferred not to disclose the value of the transaction and reported that most employees of IBC will keep their jobs, although the total numbers will also not be released. The new company will have 194 employees, of which 130 come from IBC.
The statement explained that Industrias BioQuim Central America began in the commercialization of synthetic amino acids for agricultural use in 1987, adding that three years later, it constructed a formulation and packaging plant in the industrial area of Cartago, where it manufactured products for multinational companies.
Currently, IBC generates annual sales of over US$21 million in Central America.
Subsequently, its created its own line of agricultural pesticides and is currently marketing 150 registered products in Latin America, through 400 phytosanitary registrations in 16 countries in the region.
“We selected Costa Rica for purchasing our first company in Central America, as it offers security and stability. IBC is a company with experience and a significant number of registered agrochemicals, adjuvant fertilizers and other technologies,” said Alok Kumar (General Manager of UPL Central America and the Caribbean) in a press release.
According to the statement, the purchase will promote the commercialization of world-class agricultural products and innovations, as well as support national production and exports to Central America and the Caribbean, encourage larger-scale manufacturing that will positively impact the production chain, provide employment in the area, enhance the competitiveness of the agricultural sector, and enable farmers to access more products.
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