United Phosphorus acquires majority stake in DVA Agro Brazil
Jul. 27, 2011
United Phosphorus Limited (UPL) has acquired a 51% stake in DVA Agro Do Brasil (DVA Agro Brazil), a Brazilian company, from DVA Group, Germany and other shareholders. The balance 49% will continue to be held by the existing shareholders.
DVA Agro Brazil based out of Campinas, Sao Paulo state in Brazil is engaged in the production, marketing, selling and distribution of crop protection products and specialties in the Brazilian agrochemicals market. It has a formulation plant in Brazil with expansion plans currently under execution to build capabilities in different crop protection product categories, DVA Agro Brazil had a net revenue of approx. US$ 130 million for the year ending 31st December 2010.
DVA Group, Germany will enhance its existing profile of German excellence in processes with Brazilian know-how in agribusiness by adding Indian expertise in business, technology and manufacturing. Business and cultural diversity of DVA Group, Germany will be one of key differentials. With UPL, DVA Group, Germany will further develop solutions that provide higher value added to clients of DVA Group, Germany, while at the same lime, considerably broaden existing portfolio of DVA Group, Germany.
This marks UPL second entry into the Brazilian crop protection market. DVA Agro Brazil's distinguished crop focus gives UPL access to a larger addressable market in Brazil. DVA Agro Brazil is a young company which started operations in 2005 and has experienced exponential growth since then. The management team comprises of highly experienced and skilled personnel from the crop protection industry.
UPL is the largest Indian agrochemical Company and is engaged in research, manufacturing, marketing, sales & distribution of agrochemicals and specialty chemicals across the globe. The Company's, revenue for the year ended 31st March 2011 was about US$ 1,318 million. This is the second acquisition of UPL in the current financial year following the acquisition of a strategic (50%) stake in Sipcam Isagro Brazil in April 2011 this year.
The German group DVA operates worldwide for over 40 years marketing products of the highest quality and technology to agriculture, nutrition, human and animal health and plastics. In Brazil, DVA operates through OVA Agro Brazil with a differentiated product line of post-patent crop protection and nutrition products.
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