The Hindu Business Line : United Phosphorus acquires Argentina's Reposo for $11 m

UNITED Phosphorus Ltd has announced that it has purchased 100 per cent stake, through its UK subsidiary, in Buenos Aires-based Reposo, a manufacturer and distributor of crop protection products, for $11 million.

The sale includes all stocks including assets of the company, products registrations, manufacturing site and all other property rights associated with the business of Reposo.

It is an all cash offer. United Phosphorus will fund the buy through its cash accruals, it informed the stock exchange.

Reposo is a debt-free companyhaving more than 30 registrations in Argentina. It has a manufacturing base located in Abbot, 90 kms from Buenos Aires. For the year ended June 30, 2005, Reposo's revenues were $12.5 million.

"This acquisition provides United Phosphorus with a strong platform to expand and strengthen its presence in Latin America, one of the fastest growing agrochemical regions in the world, and in our rest of the world business. After considerable growth both organically and through acquisitions in USA, Europe, and in India, the company has been actively pursuing opportunities for growth in the other regions,'' it told the exchange.

The acquisition follows the takeover of Cequisa, a Spanish agrochem company with 400 registrations worldwide and sales of Euro 19.3 million (Rs 1,060 million) and Swal Corporation Ltd with revenues of over Rs 70 crore.

In November 2004, the company also acquired Agvalue in the US.

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