Kurt Pedersen Kaalund: "With the acquisition, Cheminova will be able to fulfill its need to secure access to these important markets." Photo: Auriga Industries

Stahler, has annual sales of €75 million and employs 190 people. Cheminova had sales of DKr 4,032 ($681.5 million) in 2006 (Agrow No 518, p 3). It has subsidiaries in 18 countries and employs 1,600 people. The management of the Stahler companies will remain unchanged, although a representative from Cheminova, Jens Thorsen, will join the management group. The finalisation of the transaction is expected following approval by the relevant competition authorities in January 2008.

The acquisition is strategically important for Cheminova as it now gets direct access to the German, Austrian and Swiss markets. Stahler, which has subsidiaries in these countries, was distributing Cheminova products in Germany until now. "With the acquisition, Cheminova will be able to fulfill its need to secure access to these important markets", according to its executive vice-president, Kurt Pedersen Kaalund. Direct access to the German market, which at €1,200 million is Europe's second largest market, was crucial to the company. In a similar move, Cheminova had gained access to the Hungarian market in April by acquiring a controlling stake in Hungarian company Kerolagro (Agrow No 518, p 2). Cheminova will also gain access to products that Stahler has rights to in several European markets.

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Apart from the market synergies, the move will also lead to cost savings as Cheminova would be able to utilise Stahler's formulation and packaging plants in Stade, Germany and Milan, Italy. The company claims that in five years time, the total synergies will amount to more than €10 million annually.

The move towards Stahler comes soon after the decision of Cheminova's parent company, Auriga Industries, to focus solely on the plant protection business by divesting its other subsidiary companies. Auriga divested spraying equipment company Hardi in November and a second subsidiary Skamol in August.

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