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Agrinos AS and EuroChem Group AG signed distribution & sales, R&D, and equity investment agreements
Dec. 17, 2015
Agrinos
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United States
EuroChem Group AG (EuroChem), a leading global agrochemical company and one of the world's leading mineral fertilizer producers, and Agrinos AS (Agrinos), a global leader in biological crop nutrition products, recently jointly announced their intention to enter into multi-year marketing, distribution & sales, research & development and equity investment agreements.
The marketing, distribution and sales agreement is to market, distribute and sell Agrinos High Yield Technology (HYT®) products within specific international territories and complements the respective commercial strengths of both Agrinos and EuroChem. By combining EuroChem's expertise and pipeline of high value-added products and Agrinos' world-class biological R&D capabilities, the research and development agreement will enable the companies to not only grow commercial opportunities for their current product offering, but also develop next-generation fertilizer products through the integration of biological and chemical crop nutrition technologies. Further details, including financial considerations, related to the marketing, distribution and sales agreement, and to the research and development agreement, were not disclosed.
In addition, the companies intend to enter into an investment agreement for EuroChem to purchase 21,500,000 new ordinary shares of Agrinos with an option to purchase up to 31,533,333 of additional Agrinos shares over the next 24 months. EuroChem's investment in Agrinos will occur as part of a private placement led by a long-term strategic investor and Agrinos shareholder, Manor Investment SA. The proceeds from the investment will be used to support Agrinos' business plan execution, which includes focused growth in core geographies and research and development efforts in the second generation of innovative biological crop input products. The investment agreement is subject to customary regulatory approvals.
The completion of the transaction remains subject to the conclusion of certain agreements and customary closing conditions, including obtaining antitrust and other regulatory approvals in certain jurisdictions and other closing conditions.
This announcement contains forward looking statements concerning future events, these statements are based on current EuroChem and Agrinos information and assumptions.
Rudolf von Plettenberg, Head of Premium Products & Development at EuroChem, commented: "The partnership with Agrinos, producer of High Yield Technology products, will help EuroChem to further enhance its product portfolio and leadership in the global market of mineral and biological fertilizers. We aspire to drive innovation in the fertilizer industry, combining our traditional strengths in mineral fertilizer products with ground-breaking microbial and crop nutrient technologies, to be able to offer our customers the most effective and environmentally friendly crop enhancing solutions. This investment indicates our confidence that Agrinos' expertise and product pipeline represents a perfect fit for EuroChem's strategic development, and we look forward to our future cooperation."
D. Ry Wagner, CEO of Agrinos, added: "Agrinos is very pleased to be working with an industry leader such as EuroChem and its team of highly dedicated professionals. This partnership reflects the growing interest in the synergies between our microbial and crop nutrient products and EuroChem's diverse portfolio of specialty products, which have the potential to dramatically increase crop health, quality, and yield. The EuroChem and Agrinos teams have worked seamlessly to evaluate and determine an exciting path forward for the commercialization of Agrinos products by EuroChem, and for the development of new products using the state-of-art technologies and know-how both companies bring to the research and development collaboration."
Source: Agrinos news release
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