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Atessa (CH, Italy) 6th October 2020 – Valagro, a pioneer in the research, production and commercialization of biostimulants and specialty nutrients for crops, signed an agreement today to transfer 100% of its ownership and assets to Syngenta Crop Protection. Following the close of this transaction, Valagro will continue with its current management team and maintain its brand and distinct business name. Its headquarters, manufacturing plants around the world and the R&D centre based in the province of Chieti, in the Abruzzo region (Italy), will continue their operations ensuring the continuity of the business, together with current employment and manufacturing levels.
Over the past 40 years of its existence, Valagro has grown from a small entrepreneurial enterprise in a remote region of Italy into a global multinational company, recognized as a leader in its sector for its high quality of research and development, for the efficacy of its products, distributed in over 80 countries worldwide. The company, founded in 1980, currently has 13 subsidiaries all over the world and it employs over 700 people. In addition to its production plant in Atessa, Valagro has another plant in Italy (Grabi Chemical plant in Cremona), one in Brazil, two plants in India and two in Norway. Furthermore, the company announced the construction of a new plant located in the USA.
Valagro recognizes the need to develop synergies and strengthen its operational dimension and investment capacity to be competitive in the rapidly evolving global biologicals markets. It is expected that this transaction will result in considerable synergies between the two companies that could help Valagro further advance its efforts in the field of biologicals especially plant biostimulants, biocontrol and biofertilizers.
“The entry of the Valagro Group into Syngenta Crop Protection is a strategic choice for us, as we provide the company with considerable resources that could help us advance our efforts to develop environmentally-compatible, safe and efficacious products for our customers around the world. Valagro has recognized Syngenta Crop Protection as the industry player who can best support it in this step.” - said Giuseppe Natale, CEO of Valagro - “Today we are writing a new page in our history and we can look to the future with even greater confidence. This operation opens up new growth prospects for the group worldwide and will allow us to invest even more effectively in the sustainable future of agriculture in which we believe. For this reason, Syngenta Crop Protection is the best choice that Valagro could possibly make, from every point of view.”
“We are proud to have been Valagro’s only institutional capital since its founding and to have partnered with Giuseppe Natale and his team to support Valagro’s growth,” - said Howard Hoffen, Chairman & CEO of Metalmark Capital - “Giuseppe Natale has built a world-leading organization driving agricultural sustainability globally and we believe Syngenta Crop Protection will be a tremendous strategic partner as the company enters this new chapter.”
Jon Parr, President Global Crop Protection at Syngenta, said: “Significant levels of investment in innovations such as biologicals are necessary in order to deliver a sustainable future and help farmers deliver a food system working in harmony with nature. Syngenta Crop Protection and Valagro have a foundation in science-based innovation and are eager to collaborate, share knowledge and build on each other’s capabilities. By fostering the entrepreneurial spirit and culture of Valagro, powered by our global scale and capability, together we will shape the future of the agricultural biologicals market.”
Therefore the synergy between Valagro and Syngenta Crop Protection goes beyond a business perspective, as both companies place sustainability at the centre of their activities, which means the ability to bring about development and wellbeing by using fewer resources and thus reducing the environmental impact.
The financial terms of the transaction are not disclosed. Jefferies acted as sole financial advisor to Valagro. Chiomenti acted as primary legal advisor.