TEL AVIV, ISRAEL - The Makhteshim Agan Group (TASE: MAIN), the world leader in branded off-patent crop protection solutions, announced today two strategic acquisitions: Ingenieria Industrial S.A. de C.V. in Mexico and JK Inc. in Korea. MAI has signed a definitive agreement for the acquisition of 100% of Ingenieria Industrial S.A. de C.V. ("BravoAg"), and it has taken a 51% stake in JK Inc. Together, these new operations are expected to generate sales of approximately $40mm in 2010, and will contribute to MAI's sales starting in 2011. Both transactions, for which financial terms were not disclosed, have been signed. The acquisition of JK Inc. has closed.
The acquisition of BravoAg enables Makhteshim Agan to realize its long-term growth potential by expanding into Mexico, one of the largest crop protection markets in the world with approximately $700 million in annual sales. Established in 1951, Ingenieria Industrial S.A. de C.V. is a privately held manufacturer and distributor of copper-based pesticides, a green crop protection method used in organic agriculture. The company has annual sales of approximately $30 million, manufacturing facilities in Mexico in addition to a national sales force. Mr. Alberto Bravo, Chief Executive Officer of BravoAg, whose company has had a long-standing business relationship with Makhteshim Agan, will remain as head of Ingenieria Industrial S.A. de C.V.'s operations.
The business combination with JK Inc. provides Makhteshim Agan with a direct presence in Korea's stable and profitable crop protection market. JK Inc. has annual sales of approximately $10 million, sales offices throughout Korea and over 1,000 retailers carrying its product line, in addition to a local formulation facility. JK has developed commercial relationships with leading international crop protection suppliers, as well as with Makhteshim Agan with which it has worked since 2005. Makhteshim Agan's product range and global commercial and registration capabilities, combined with JK distribution network and local formulation facility, will enable MAI to better meet customer needs in the Korean market.
Mr. Erez Vigodman, Makhteshim Agan's President and Chief Executive Officer, said: "We are very pleased to welcome Ingenieria Industrial S.A. de C.V. and JK Inc. into the Makhteshim Agan group. Both management teams are well-known to us, and both companies have excellent positions in their respective markets. With these transactions, we continue to implement our strategy of expanding into emerging markets through buying existing platforms and using them to generate further growth. I am confident that our strengthened capabilities in these markets will provide us with significant opportunities going forward."
SOURCE: Makhteshim Agan Group