Ihara acquires control of Innova, makes strong entry into fertilizer market

Brazilian agrochemical company, Ihara, has agreed to acquire control of Innova, a company specializing in fertilizers. The transaction is currently under review by the Administrative Council for Economic Defense (Cade), Brazil's antitrust regulatory body.

According to a statement from Cade, the deal has been in process since January of this year and involves the acquisition of 85% of the shares from Adriano Renato de Azeredo, founder and one of the partners of Innova. He will retain a 15% stake in the company, which will continue to operate independently but "with strong operational and strategic alignment to Ihara's directives."

Founded in 1965 and headquartered in Sorocaba, São Paulo, Ihara is controlled by Japanese shareholders, including Mitsui Chemicals, Nippon Soda, and Mitsubishi Corporation. These groups manufacture and develop in Japan the molecules that form the basis of the pesticides that Ihara markets in Brazil.

The company boasts a diversified portfolio with over 80 products, including fungicides, herbicides, and insecticides, and has more than ten branches and distribution centers across eight Brazilian states in the Southeast, Central-West, and South regions, as well as operations in the Northeast. In 2023, Ihara reported a revenue of $800 million and made investments totaling R$180 million.

Innova, on the other hand, was established 11 years ago in Foz do Iguaçu, Paraná. The company produces liquid, granular, and pelletized fertilizers, inoculants, adjuvants, soluble salts, and biological control agents. It also manufactures plastic packaging for agribusiness, with branches in five states and operations in Latin American markets such as Argentina and Bolivia.

Lucas Botelho, Ihara's commercial director in Brazil, stated that he is not yet authorized to comment on the acquisition until the deal is formalized. After two challenging years for the input sector, 2025 has started promisingly, and the goal is to surpass $1.2 billion in revenue this year.

To achieve this goal, Ihara is enhancing customer access with new purchasing and financing options. The company currently operates through direct sales, cooperatives, distributors, and resellers.

Additionally, the Brazilian manufacturer plans to launch five new products, including an insecticide for chewing insects, a fungicide, a premium herbicide for corn, and up to three biological inputs. The company is active in Brazil's main agricultural crops, namely soybeans, corn, and sugarcane.

Last year, Ihara launched seven pesticides, exceeding the market average pace. Now, the expectation is that the Brazilian agrochemical giant will also make a strong entry into the promising plant nutrition input market with the acquisition of Innova.

(Editing by Leonardo Gottems, reporter for AgroPages)