UPL in talks with PE fund to bid for Arysta

United Phosphorus Limited (UPL) is in talks with a Japanese private equity fund to jointly bid for Arysta LifeScience Corporation, the world’s largest privately held crop protection and life science firm.

UPL is among six shortlisted bidders expected to put in their bids this month. The others are Israel’s Makhteshim Agan, Australia’s Nufarm and private equity funds such as Advantage Partners, Bain Capital and Permira.

Olympus Capital, owner of Arysta, is expected to generate $2 billion (about Rs 7,830 crore) from the sale which is nearly double the turnover of 124.1 billion yen (or about Rs 4,130 crore) that the company registered last year.

UPL is also preparing to bid alone just in case it does not manage to find a partner.
For this the company has already chalked out plans to raise $ 500 million (about Rs 1,960 crore) through an equity issue.

The remaining $1.5 billion (about Rs 5,870 crore) may be raised through a mix of recourse and non-recourse financing. UBS, the company’s advisor for the bid, will organise the fund if and when it is needed.

Read more in The Business Standard article.

Relate Post:
United Phos, Rallis eye $2 bn buy in Japan

United Phos, Rallis eye $2 bn buy in Japan

Another big-ticket global acquisition by an Indian company is brewing. United Phosphorus and Tata Group enterprise Rallis India are in the race to acquire the world’s largest privately held crop protection and life sciences firm, Arysta LifeScience Corporation, from private equity firm Olympus Capital Holdings.

Sources close to the development said these two Indian companies were among the six contenders for the Tokyo-based firm. The acquisition is expected to cost nearly $2 billion (Rs 8,200 crore), or nearly double Arysta's turnover of 124.1 billion yen (Rs 4,400 crore) last year.

Other bidders include an Israeli firm, Australia’s Nufarm and Blackstone, the global private equity fund.

Olympus has put Arysta on the block and has appointed investment banks Goldman Sachs and Lehman Brothers for the sale. It had bought 8.7 per cent of Arysta in 2002 for around $80 million (Rs 320 crore). Since then, it has been gradually building up its stake.

Read more in The Business Standard article.