Logo of SABIC Agri-Nutrients
SABIC Agri-Nutrients Co. signed today, Jan. 24, a binding agreement to acquire a 49% stake in ETG Inputs Holdco Ltd. for an enterprise value of $320 million (SAR 1.2 billion), the company said in a filing to Tadawul.
The deal is based on cash and debt free, as well as changes in the working capital adjustment that will be determined when the transaction completes.
ETG Inputs is a limited liability company engaged in the blending and distribution of agri-nutrients, where it directs its sales to farmers and end customers in several African countries.
The step is part of SABIC Agri-Nutrients' strategy to integrate the value chain to include the blending and distribution of agri-nutrients in the global markets and move closer to farmers and end customers.
The Tadawul-listed firm aims to expand and take advantage of growth opportunities to keep up with expected developments and secure a leading position in the global agri-nutrients industry.
The deal is subject to obtaining the required regulatory approvals as well as other terms and conditions pursuant to the acquisition agreement.
SABIC Agri-Nutrients expects that the relevant financial impact will appear in the second half of 2022.
The acquisition will be financed from the company’s resources, in addition to bank facilities.
The company confirms that there are no related parties to the deal.
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