MA pays $1bn for Albaugh

City A.M. Reporter
ISRAEL’S MA Industries is to buy US firm Albaugh for about $1bn (£664m) to bolster its presence in the Americas and solidify its position as the world’s biggest generic agrochemical maker.

MA, also known as Makhteshim Agan, said yesterday it signed a memorandum of understanding to pay $340m in cash, $455m in seven-year promissory notes and 59m of its own shares, equivalent to a 12 per cent stake and worth $211m.

The acquisition of Albaugh, a private company based in Iowa, is expected to close in the fourth quarter and to be accretive to earnings per share on a non-GAAP basis within a year of closing.

Albaugh’s financial debt will not exceed $280m, MA said in a statement. The deal is subject to the completion of due diligence and regulatory approvals in the United States, Europe and other countries.

Albaugh is a leading generic crop protection company in the United States, Mexico, Argentina and Brazil. MA is a subsidiary of Koor Industries, which is part of the IDB Holding group. It had sales of $2.2bn in 2009.