Jul. 13, 2015
South African explosives and specialty chemicals group AECI has entered into an agreement to acquire Malawi-based agrochemicals, seeds and spraying equipment distributor Farmers Organisation Limited (FOL) from Rendale Holdings for an undisclosed amount.
This formed part of AECI’s strategy to expand its agrochemicals business in Africa through agrochemicals solution provider Nulandis.
“FOL has been our customer for 20 years, so we have a long-established relationship. FOL is now a leader in Malawi’s commercial estates market and revenue from the smallholder market segment is increasing. This fits extremely well with Nulandis’ own growth strategy, including greater focus on the smallholder market in Africa.”
“The acquisition of FOL provides Nulandis with a springboard into this market segment in Malawi and in other countries in Southern and East Africa. In addition, there will be opportunities for Nulandis to expand sales of its in-house products through FOL,” AECI chemicals executive and Nulandis chairperson Edwin Ludick said.
He added that FOL MD Robert Renshaw would remain in the business for at least the next two years.
Meanwhile, AECI CE Mark Dytor noted that Africa’s need to produce more food was pressing. “In many instances, however, crop yields are far from optimal and agrochemicals use is either inadequate or inefficient.”
“We believe our products and expertise can make a difference in this regard across all segments of the agricultural sector, including the very important smallholder market where our interface will be enhanced by the FOL acquisition,” he added.