PRESS RELEASE
Phosyn plc to be acquired by Yara International, ASA
Pocklington, York (2006-03-22): Phosyn plc has entered into a letter of intent with Yara International ASA for it to increase its shareholding position in Phosyn from 35 to 100 percent. This planned acquisition confirms Phosyn´s ambition to join into Yara´s commitment to expanding its speciality plant nutrition business.
One of the most pronounced trends in the plant nutrition market is the increased focus on speciality fertilisers. Yara is the number one global brand within the cash crop segment (fruit, flowers and vegetables), an area that has demonstrated an annual double digit growth over the past three years. This has been based on a commercial concept of offering a complete plant nutrition portfolio, including agronomic competence and tools targeted towards the high value crop segment.
Yara´s ambition is to become the fertiliser industry shaper. They are the leading producers of ammonia, nitrates, complete NPK, speciality fertiliser and has the world's most extensive fertiliser sales and marketing operation. With turnover of £4.1 billion and of EBITDA £575 million and employing over 7000 staff, Yara continues to deliver strong financial performance. The combination of Yara´s competence with that of Phosyn is a very obvious fit as it provides a "partnership" that has the ability to provide a one stop shop of products for growers.
"Yara is a perfect match for Phosyn, supporting our joint ambition to provide farmers with an unmatched plant nutrition concept," says Geoff Adams, Chairman of Phosyn, who sees the acquisition as a possibility for Phosyn to further grow its business through an expanded global distribution network.
The closing date for the acquisition is expected to be during second quarter 2006 subject to approval by regulatory authorities. The parties have agreed not to disclose the purchase price.
As you are aware, Phosyn is a global leader within the business of foliar applied micronutrients. The majority of Phosyn products are sprayed onto growing crops to be taken up by the leaves (foliar application). The Phosyn brand is a recognised brand all over the world generating a turnover close to £30 million in 2005, of which approximately 90% is export related. The company has developed profitably over several years and achieved an EBITDA of £4.8 million in 2005.
Phosyn has a unique commercial approach for sales of micronutrients based upon soil or tissue analysis. It has two wholly owned laboratories and operates the Megalab system in cooperation with external laboratories all around the world. The total number of employees is 146 with production and head office in Pocklington, UK.
Author: Dr Geoff Adams, Chairman & Bernard Jacklin, Managing Director, Phosyn Plc
Published: March 2006