The company entered the list of the top five agrochemicals players globally with over US$ 5 billion in combined revenue and around US$ 1 billion in pre-tax profit after the company announced its largest acquisition of the Arysta LifeScience, an US-based company for an amount of US$ 4.2 billion last year in July.
UPL's Hong Kong subsidiaries will execute the present deal with the Chinese company. 100 per cent shares of Laoting Yoloo based in the Heibei province will be acquired by UPL for an undisclosed amount and in return UPL will issue 25 percent shares of its Hong Kong subsidiary to Beijing Yoloo.
However, UPL source said they will spend around Rs 95 crore (US$ 13.5 million) for the deal.
Laoting Yoloo has over 100 product registrations, about 1,200 distributor contacts and over 240 employees.
The transaction is yet to receive the necessary regulatory approvals and fulfilling other conditions.
"Our goal is to create an open network for agriculture, activating connections across the world's agriculture system. It aims to power new levels of sustainable growth -- for farmers, for producers, for customers, for partners and for societies everywhere. The acquisition will enhance our ability to achieve this purpose," UPL Global chief executive Mr. Jai Shroff said.
The deal between UPL and Arysta LifeScience, an US-based company was completed in February 2019. The acquisition that was worth US$ 4.2 billion was announced in July 2018 and promoted UPL's position in the global agricultural solutions market with US$ 5 billion in combined sales and pretax profit of around US$ 1 billion.
The deal was done after UPL raised US$ 3 billion bank loan and US$ 1.2 billion equity investment from Abu Dhabi Investment Authority and TPG.
UPL is strong in India, the Americas, Western Europe and Arysta's strength is in Africa, Russia and Eastern Europe, providing it a global platform for 13,000 products from the new entity.
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