Nufarm acquires 51% equity in Brazilian seed company
Nufarm’s wholly owned Nuseed subsidiary, Nuseed do Brasil S.A., has acquired 51 percent of the equity in Atlantica Sementes Ltda., a Brazilian business specializing in sorghum and sunflower seeds.
The acquisition provides an important base in the growing Brazilian market and is a further step in the expansion of Nuseed’s global platform.
Atlantica has administration, sales, marketing, production and testing capabilities in Brazil and a strong branded market presence. Atlantica employs 45 people with offices in Curitiba and Rio Verde. Current annual sales are approximately R$25 million Brazilian reals (approximately AU$11.5m).
The majority stake in Atlantica – to be purchased at a cost of R$25 million – will allow Nuseed to supply a number of existing hybrids through the Atlantica distribution network and will leverage other development programs in Australia, Argentina and the USA.
Atlantica will have access to several new high value categories in the Nuseed pipeline including high sugar forage sorghum, which can be utilized by sugar cane ethanol plants seeking to improve year round feed-stock efficiency; and high oleic sunflowers, which produce a highly functional low saturated fat sought by food manufacturers and restaurant chains.