Crystal Crop Protection to buy brands of FMC

Crystal Crop Protection is close to acquiring some key brands of Philadelphia-based chemicals maker FMC Corporation ahead of its INR 1,000-crore initial public offer (IPO), marking the company’s third such purchase in 2018. 

The portfolio of NYSE-listed FMC Corp. brands that are sought to be acquired would include Furadan, Splendour, Metcil and Affinity Force, sources told ET. The acquisition will help the Indian R&D-based crop protection manufacturing and marketing company strengthen its insecticide and herbicide portfolio.

Crystal Crop declined to comment on the acquisition. It recently received final observations from SEBI regarding the DRHP it filed for raising INR 1,000 crore via an IPO, comprising a fresh issue of up to INR 545 crore and an offer for sale of up to INR 455 crore.

According to the DRHP, net proceeds of the IPO will be utilised toward prepayment/ repayment of certain working capital facilities, acquisitions, and other strategic initiatives and general corporate purposes. 

The latest acquisition is expected to add around 15 per cent to its branded retail business, say sources.

“It will make inroads into paddy, maize and sugarcane (Furadan and Furadan ultra), while Affinity Force will give an edge in the wheat segment as it controls some of the most difficult weeds. Besides this, Splendour is expected to add value to the tea market,” added a second source familiar with the development.

This is Crystal Crop’s third acquisition in 2018. The first was a chemicals plant from Cytec India Specialty Chemicals & Materials, and the second the Indian sorghum, pearl millet and fodder seeds business from Syngenta India. It signed an agreement with Germany’s BASF SE in 2016 to acquire the brand Bavistin and bought the Hyderabad-based Rohini Seeds and Rohini Bioseeds and Agritech in 2011 to enter the seeds market.