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Tochigi Ontario Holdings says Platform Specialty will acquire Arysta for $3.5 billion

Tochigi Ontario Holdings has today said that US-based speciality chemicals production company Platform Speciality Corporation has agreed to acquire Arysta LifeScience for $3.51 bn, including debt.
 
“The terms of the agreement to purchase Arysta LifeScience is a cash and stock deal. Platform Speciality will pay $2.91 billion in cash and $600 million in stock to Arysta’s private equity stock owner Permira” said Jonathan Turner, Head of Corporate Trading at Tochigi Ontario Holdings. “Platform Speciality Corporation, earlier valued at $3.35 billion on Monday, will double its size,” he added. 
 
Tochigi Ontario Holdings says Platform Specialty will acquire Arysta for $3.5 billion



The company was co-founded by Martin E Franklin last year out of a shell company. On completion of the deal, Franklin will own 20% of the stock in Platform Speciality Corporation. The company specializes in the production of chemicals used in oil drilling industries, electronics, and automotive. It has already taken over smaller businesses, including the deal made with MacDermid for $1.8 billion.
 
The plan for acquiring Platform Speciality replicates that of Franklin’s consumer products business Jarden Corp. 
 
MacDermid deal, and a recent €300 million deal that Platform Speciality lately closed with Agriphar, an agrochemicals company based in Belgium.
 
The Chief Executive of Platform Speciality, Dan Leever, said that the company was beginning their acquisition deals and there were several more such deals with famous chemical companies in line. Leever also noted that the company was looking forward to expanding beyond agrochemicals.
 
Platform Speciality has always made deals with businesses with little or no manufacturing capacity, instead of developing the science behind the chemical products. 
“Arysta was bought by Permira for €1.95 billion in 2008. It was the group’s first acquisition in Japan. Permira will make a 70% return on its investment,” said Michael Walker, Director of Corporate Equities at Tochigi Ontario Holdings.  
 
The merger of former agrochemical Japanese trading companies Tomen and Nichimen in 2001 led to the creation of Permira. The company is associated with the manufacturing of farming chemicals, especially pesticides, or those that offer protection to the crops. They also develop veterinary medicines and pharmaceutical additives.
 
Permira was looking forward to a sale or initial public offering in March. Later in September, they filed paperwork for a US Initial Public Offering (IPO) too but moved ahead with their sales plans.
 
Earlier this year, the company was re-domiciled, which means Platform Speciality could have easily used the transaction to execute a so-called corporate tax inversion – a deal through which a US company uses the procurement of a foreign rival to relocate its lawful base.
 
Nevertheless, Leever revealed that the deal had no tax angle and that Platform Specialty would continue to operate as a US company.
 
Platform Specialty shares surged 3% to $25.01 in Monday morning trading.
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