The Abu Dhabi Investment Authority is investing in India's UPL to back its acquisition of Platform Specialty Products' agro-chemicals business.
Adia and alternative asset management firm TPG will invest $600 million each for a combined stake of 22 per cent in UPL to help it fund a $4.2 billion deal to buy Platform's unit Arysta LifeScience, Adia said in a statement on Friday.
Adia's investment "aligns with our strategy of partnering with best-in-class businesses to support and accelerate their growth plans," Hamad Shahwan Aldhaheri, executive director of private equities department at Adia, said. "The combination of Arysta and UPL Corp will create a leading crop protection business with a global footprint and diversified product portfolio supported by a strong manufacturing and R&D expertise."
The $4.2 bn cash deal is expected to close late this year or early next year, Platform Specialty Products said in a separate statement on Friday. The transaction will separate its agricultural solutions unit, leaving it with a portfolio of chemicals-focused businesses. It will change its name to Element Solutions following the closing of the deal and will use the proceeds to pay down its debts.
“This transaction with UPL creates an agricultural chemicals powerhouse with highly complementary capabilities,” Martin E. Franklin, Platform's chairman said in the statement.
The acquisition will help UPL reach more than 130 countries with more than 12,800 products and be well poised for further expansion in its sector, according to TPG.
"This is a landmark transaction that will foster a strong value proposition for the entire ecosystem of growers, distributors, suppliers and innovation partners," Puneet Bhatia, co-managing partner of TPG Capital Asia, said.