04 January 2020, BEIJING, CHINA: ADAMA Ltd. and Jiangsu Huifeng Bio Agriculture Co. Ltd today reported that they have now closed an initial phase in their previously announced transactions. In this first phase, ADAMA has now acquired a 51% stake in Shanghai Dibai Plant Protection Co. Ltd. a subsidiary of Huifeng focused on the sale and distribution of key formulated crop protection products in China.
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This transaction will significantly bolster ADAMA’s commercial position and offering in this key and growing crop protection market. Through this transaction, ADAMA’s commercial platform in China is enriched by more than 150 registered products with sales of approximately $50 million and is joined by a highly experienced sales team of approximately 170 employees across China.
The second phase of the previously announced transaction, in which ADAMA intends to acquire a 51% equity stake in Jiangsu Kelinong Co., Ltd. , a newly established, wholly-owned subsidiary of Huifeng, to which Huifeng is to transfer its key crop protection synthesis and formulation facilities, is currently still in process and remains subject to customary Closing conditions, including regulatory and other corporate approvals, and is further subject to full resumption of production at the relevant manufacturing facilities of Huifeng.
Mr. An Liru, SVP China for ADAMA, said: “This transaction is a significant milestone in our continuous commercial expansion in China, and will significantly bolster our commercial activities, positioning and offering in this key strategic market for us.”