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Syngenta, a global leader in Agri-business, has decided to acquire Zeraim Gedera. Nitzan Kadmon, the editor of Zeraim Gedera "Seasons & Taste" Newsletter, interviewed Ohad Zuckerman, Zeraim Gedera’s President & CEO, in order to learn how this acquisition will influence Zeraim Gedera.
Why did Syngenta acquire Zeraim?
Syngenta and Zeraim have complementary product lines and market presence in
high-value and growth market segments (South Europe, Middle East and North America) in fruity crops, such as tomatoes, peppers, watermelons, melons and cucumbers. This acquisition will reinforce the geographical presence of Syngenta in the Mediterranean basin, Asia, North and Latin America as well as strengthen its position in fruity crops.
Moreover, Zeraim has a long-standing technology relationship with leading public and private research bodies in Israel as well as efficient in-house research capabilities. Getting access to Zeraim’s internal and external R&D capabilities will help Syngenta strengthen its innovation leadership in high-value segments and to further enhance its technology.
What do you have to say about the two years with Markstone?
As in all its companies, Markstone formed and applied successfully a clear and focused strategy of value raising and improvement of Zeraim, by way of bringing the company to a stage at which it is ready and suitable to be integrated into a global platform offered by Syngenta. The teamwork of Markstone and the company management in building the value of the company by way of investments in marketing and sales and in research and development contributed greatly to the future strengthening of the company, and to the interest showed by Syngenta.
I enjoyed working with my Chairman, Amir Kess, and learned a lot from him.
Why are Syngenta and Zeraim Gedera a good fit?
Both companies’ strategy is to focus on high-value crops and segments. Syngenta and Zeraim Gedera own complementary portfolios. We also share the same values and ambition: innovation, customer satisfaction and growth.
Will the Syngenta Vegetables organizations distribute the Zeraim brand?
We intend to maintain the existing Zeraim organization, selling under its own brand at least in its current key markets. Subject to the final integration blueprint, it is, however, also possible that Syngenta Vegetables organizations will take on representation of the Zeraim product portfolio in various markets. Moreover, Zeraim will have the opportunity to broaden its product offering with Syngenta varieties.
Do you anticipate any revenue and cost synergies?
While we do not exclude minor cost synergy potential, the main driver of this acquisition has to be found in accelerating both companies’ profitable growth through improved portfolio offering and market presence.
What are the expected benefits and synergies of this acquisition?
This acquisition will position Syngenta clearly as the #1 player in the vegetable seeds industry in EAME (Europe, Africa and Middle East). On the other hand, Zeraim will be able to enjoy Syngenta’s strong research and technology and its global spread of R&D stations, production locations and marketing outlets.
What does this deal mean for employees?
It is essentially aimed at supporting the Syngenta growth strategy. That is good news for all employees! We intend to maintain the existing Zeraim organization, selling under its own brand, at least in its current key markets.
What are the next steps in integrating the two companies?
We will form integration teams for key functions and operations. They will comprise both Syngenta and Zeraim employees. These teams will define strategic priorities in crops and segments, as well as processes in areas like supply chain and product development. We believe that minimal alignment will be enough to bring both organizations together, whilst also maintaining existing customer contacts and developing all our valuable brands.
What are the benefits for Zeraim customers from this deal?
Zeraim customers will over time get a broader variety offering and a perfect combination of world-class breeding, research & development and supply chain capabilities. Moreover, they will continue enjoying our special personal care and attentive service. It’s important to explain that until further notice our customers will continue meeting the same contact persons and that there will be no change in prices, in the ordering process or in the delivery methods of Zeraim.
How do you feel on the personal level?
I am very happy and proud that our company is the reason that one of the global
Agri-business leaders decided to invest in Israel. The hard work our management and employees put together in the last decade proved to be rewarding. I am of the opinion that this strategic step has brought us to a safe harbor and allows for a confident future for the company and its employees. Global competition becomes tougher every day. We are forced to fight in the field, on the shelf and in court, when IP issues are handled. Becoming a part of Syngenta will equip us with the necessary tools to strengthen our R&D and market position as well as accelerate our growth. Syngenta has asked me to become a member of its Vegetables Leadership Team and continue to lead Zeraim, which I am delighted to do. Zeraim and Syngenta both put strong emphasis on expertise, team spirit and customer-friendly service and share the same vision and values. I am sure we will enjoy being a part of Syngenta and grow as business as well as individual professional.
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