BY Fraser Tennant
In a deal that reinforces its commitment to driving value for farmers through innovative, sustainable solutions, agricultural chemical and seed company Corteva, Inc. is to acquire independent biologicals firm Stoller Group, Inc. for $1.2bn.
With operations and sales in more than 60 countries and 2022 forecasted revenues of more than $400m, the Houston-based Stoller brings immediate scale and profitability, with earnings before interest, taxes, depreciation and amortisation (EBITDA) margins that will be accretive to Corteva.
Moreover, the biologicals market is expected to grow by high-single digits annually through 2035, representing approximately 25 percent of the overall crop protection market by 2035. Over the past three years, Corteva has expanded its biologicals business through external and internal innovation, R&D collaborations, licensing and distribution agreements, and acquisitions.
“Biologicals provide farmers with sustainably-advantaged tools that complement crop protection technologies, and collectively, can work to address global challenges around food security and climate change,” said Chuck Magro, chief executive of Cortevo. “Stoller represents a leader in the biologicals industry given its commercial presence and market expansion potential, while also delivering attractive growth and operating margins.”
In fact, Stoller is the second biologicals acquisition for Corteva in 2022, following its recent acquisition of Symborg, an expert in microbiological technologies based in Murcia, Spain. Corteva will bring together the complementary commercial and technical strengths of both Stoller and Symborg as part of its biologicals strategy.
“In Stoller’s 50-plus year history, we have successfully helped growers around the world increase their productivity and improve their sustainability,” said Guillermo de la Borda, chief executive of Stoller. “We are proud to join forces with Corteva as we share a vision of helping farmers succeed in growing the nutritious food the world relies on.”
The transaction is expected to be completed in the first half of 2023 following regulatory approvals and satisfaction of customary closing conditions.
Mr Magro concluded: “In combination with Corteva’s leading innovation organization, Stoller provides a platform for expanding and accelerating Corteva’s biologicals business to become one of the largest players in the rapidly expanding biologicals market.”
News: Corteva to Buy Stoller in $1.2 Billion Deal to Boost Biologicals