Agchem Maker Adama Strikes China Deal

Adama, the Israeli agrochemical firm formerly known as Makhteshim Agan, is buying a number of Chinese agchem businesses from its parent, ChemChina, in advance of an initial public offering on the New York Stock Exchange. Adama is paying ChemChina, which owns 60% of Adama, $623 million for the businesses, including debt. Together the businesses being acquired generate annual sales of $850 million, which will bring Adama’s sales to almost $4 billion annually and advance the firm’s goal of being the world’s largest supplier of off-patent crop protection chemicals. Adama plans to close the transaction in the first half of next year, following its IPO.