UPL acquires Arysta Life for $4.2b

Mumbai, July 20: In one of the largest overseas deals by India Inc in recent years, chemicals producer UPL (formerly United Phosphates) on Friday teamed up with Abu Dhabi Investment Authority and TPG to snap up Florida-based Arysta Life Science Inc for $4.2 billion in an all-cash deal.

The transaction will enhance the position of UPL as a global leader in the agriculture solutions market and make it a $5 billion entity in combined sales offering it a $200 million savings through operational synergies.

The tie-up will see Abu Dhabi Investment Authority, which is the world’s second-largest sovereign wealth fund, and private equity major TPG Capital infusing $1.2 billion into UPL Corporation, the Mauritius-based international arm of UPL and the acquirer company, and will collectively own 22 per cent. These new investors will infuse $600 million each, UPL said.

Though known for acquisitions, Arysta is UPL’s largest bet. Once completed, it will make UPL the world’s fifth- largest cropprotection company after Bayer, DuPont, Syngenta and the biggest generic player with a combined revenue of $5 billion. Currently, it is the ninthlargest player.

UPL vice-chairman Vikram Shroff said the all-cash deal was signed between UPL Corporation and the Florida-based NYSE-listed Platform Specialty Products Corporation’s farm pesticides business under Arysta Life Science Inc brand and its subsidiaries.

— PTI