United Phosphorus Ltd has announced that the Company through its UK subsidiary has purchased 100% stake of ICONA and ICONA San Luis S.A. (ICONA), a manufacturer and distributor of crop protection products headquartered in Buenos Aires, Argentina. The share purchase includes all stocks, products registrations, manufacturing sites and all other property rights associated with the business of ICONA.
ICONA is a debt free Company, having more than 35 registrations in Argentina. It has a strong manufacturing base located in Capilla del Senor from Buenos Aires and at Justo Daract. Justo Daract is located in the province of San Luis. ICONA has its own distribution network covering more than 1000 customers. For the year ended September 30, 2006 ICONAs Consolidated revenues were USD 13 mm. The total cost of acquisition for the Company is USD 10 mm and the acquisition is effective from July 18, 2007. It is all cash offer and the Company will find this through its cash accrual.
This acquisition provides the Company with a much stronger platform to expand and strengthen its presence in Argentina. With the strong Agricultural commodity pricing the market is going to be very good in Argentina. ICONA has a very strong distribution network in Argentina. After considerable growth both organically and acquisitions in the USA, Europe, and in India, the Company has been actively pursuing opportunities for growth in the other regions. The acquisition of ICONA is in line with Companys strategy to grow its business globally both organically and through acquisitions.
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