United Phosphorus buys Advanta for Rs 560 cr

This acquisition will be effective from February 14, 2006.

United Phosphorus Ltd (UPL) has acquired Advanta Netherlands Holdings BV, a Netherlands-based supplier of seeds and seed technologies.

The acquisition, done via UPL' subsidiary in Mauritius, is estimated at ¤100 million (approximately Rs 560 crore), sources close to the development said.

The deal, facilitated by Yes Bank, was through a competitive bid, which had two other global companies "� Singenta and Du Pont "� and another investment banker from India in the fray.

Aditya Sanghi, country head (investment banking), Yes Bank, who facilitated the Advanta acqusition deal said it was one of the longest evaluation processes, as the due diligence covered multiple synergies to UPL for a strong entry into the global agri-biosciences sector.

The deal will help UPL jumpstart its entry in the high-end seed business. Advanta's research and development is characterised by the use of superior breeding programmes and bioscience techniques, providing value addition to farmers, downstream industries and consumers. It has operations in Australia, Asia and South America.

This acquisition, to be effective from February 14, 2006, is likely to provide UPL with a strong platform to become a leader in varied products by furthering relationships with distributors and farmers. The company will be positioned to develop diverse global units of the European company.

A senior UPL executive said the company was eyeing companies with broad product registrations for European markets. The company has growth plans for both overseas and domestic markets through inorganic route.

"For a strategic deal that will complement our growth plan, finance may not be constraint," he added. UPL had recently planned to issue an FCCB or any other financial instruments for an amount not exceeding $150 million.

This is the second acqustion of UPL in the recent past. The company had recently acquired 100 per cent stake of an Argentinian company, Reposo, a manufacturer and distributor of crop protection products located in Buenos Aires for US $ 11 million.

The deal included all stocks including assets of the company, products registrations, manufacturing site and all other property rights associated with the business of Reposo.