Australian seeds and crop protection specialist Nufarm (ASX: NFM) today announced it had sold its South American operations to Sumitomo Chemical for $1.9 billion.
The company sold its businesses in Brazil, Argentina, Columbia and Chile and will continue to supply the operations under an agreement wth the Japanese global group.
The sale represented a multiple of 12 times FY2019 underlying EBITDA, and follows what the company described as the ‘stabilisation’ of its business in the economically-challenged region.
Nufarm was also confirmed as commercialisation partner for a range of Sumitomo fungicide products in some European markets.
Existing product development and commercialisation agreements in other product areas were also extended to 2025, and a mechanism introduced for further extensions.
The re-alignment of supply and the commercial arrangements between the two companies was hailed by both as a positive.
This story was edited to correct the deal value.
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