Yara International ASA has entered into a letter of intent with the other shareholders of the UK based micronutrient company, Phosyn plc, to increase its shareholding position from 35 to 100 percent. This planned acquisition confirms 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 fertilizers. 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.
“Phosyn is a perfect match for Yara, supporting our ambition to provide farmers with an unmatched plant nutrition concept,” says Tove Andersen, Head of Yara Specialities, who also sees the acquisition as a means to achieve cost synergies and improve scale in marketing and distribution of products through Yara’s Downstream 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.
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 GBP 30 million in 2005, of which approximately 90% is export related. The company has developed profitably over several years and achieved an EBITDA of GBP 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.