UPL Mauritius, a wholly-owned subsidiary of UPL, is set to acquire 100% shares of agro-chemicals-focussed Bioquim Group that has entities in Costa Rica, the Caribbean and Central American region, with an aim to enhance its market access in the region, according to a stock exchange notification.
UPL Mauritius, a wholly-owned subsidiary of UPL, is set to acquire 100% shares of agro-chemicals-focussed Bioquim Group that has entities in Costa Rica, the Caribbean and Central American region, with an aim to enhance its market access in the region, according to a stock exchange notification. UPL did not disclose the transaction amount but said it would be done via cash consideration. The companies that UPL Mauritius is set to acquire include Industrias Bioquim Centroamericana (IBC), Procultivos, Inversiones Lapislazuli Marino, Bioquim, Bioquim Nicaragua, Bioquim Panama, Biochemisch Dominicana, and Nutriquim de Guatemala.
The group is engaged in the business of producing, selling and marketing of agro-chemicals and crop protection products in Costa Rica and certain countries in the Caribbean and Central American Region. “Bioquim, a 30-year-old group having a long-term customer relationship in the region and an exciting portfolio of technical registrations will give UPL an enhanced market access in Central America and the Caribbean region. Farmers will have the best solutions available due to combined availability of UPL and Bioquim products,” UPL said in the release.
It further indicated that IBC was founded in 1987 headquartered in San Jose, Costa Rica and does manufacturing and distribution of agrochemicals. “Other entities have been incorporated later with the objective to hold registrations, certain assets and sell products. Bioquim Group owns comprehensive portfolio of synthetic herbicides, insecticides and fungicides, largely used on pineapple, banana, coffee, sugar cane, vegetables, rice and others.
It sells its products in Costa Rica, Nicaragua, El Salvador, Honduras, Panama, Dominican Republic and Cuba. Bioquim Group’s annual turnover from the fiscal year 2015 to fiscal year 2017 was in the range of about $18 million to $21 million,” it said.
The transaction, which is expected to be completed in the first half of calendar year 2019, will require anti-trust approvals in Costa Rica. Shares of UPL closed 2.67% up on the Bombay Stock Exchange at Rs 780 during Wednesday’s session.