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Swiss agribusiness company Syngenta AG (SYT, SYENF.PK) revealed its agreement to buy Zeraim Gedera Ltd. from Israeli private equity group Markstone Capital Partners for $95 million, subject to closing adjustments. Zeraim is an Israeli vegetable seeds company that focuses on high-value crops, including tomato, pepper and melon. Syngenta expects to close the deal in 2007 pending regulatory approvals.
According to Basel, Switzerland-based Syngenta, the acquiring company has outstanding breeding capabilities as well as longstanding relationships with Israeli research institutes and universities. Zeraim generated sales of $33 million in the fiscal year 2006. Meanwhile, Syngenta, a leading agribusiness committed to sustainable agriculture through innovative research and technology, ranks third in the high-value commercial seeds market. Syngenta anticipates the purchase will reinforce the growth and quality of the company's vegetable seeds business.
Commenting on the purchase, Mike Mack, Chief Operating Officer Syngenta Seeds said, “This acquisition further expands Syngenta's position in high-value growth segments. Zeraim Gedera's portfolio and its strong presence in Mediterranean markets ideally complement our vegetable seeds business.”
Founded in 1952, Zeraim focuses on six high-end vegetable products for growers and consumers, such as tomatoes, sweet peppers, watermelons, melons, squash and cucumbers. Following the deal closure, the acquiring business will continue to trade under the Zeraim brand.
With around 21 thousand employees in over 90 countries, Syngenta generated sales of about $8.1 billion in 2006. Syngenta's Vegetable Seeds division breeds, produces and markets superior quality proprietary vegetable seeds. The portfolio of the business that operates globally under regional brands includes tomato, pepper, sweet corn, watermelon, melon, brassica, lettuce, cucumber, leek, beans and peas.
SYT closed Friday's regular trading session at $40.14, up $0.34 or 0.85%, on a volume of 160 thousand shares.
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