AECI has entered into an agreement to acquire 100% of Farmers Organisation Limited ("FOL") from Rendale Holdings, with effect from 1 June 2015. FOL is a distributor of agrochemicals, seeds and spraying equipment on behalf of multinational producers. It is headquartered in Blantyre, Malawi, and also has distribution centres in Lilongwe and Mzuzu in that country. In its last financial year to February 2015, the company generated revenue of US$14 million.
The acquisition is in line with of AECI's strategy to expand its Agrochemicals business in Africa through Nulandis, which is leading this strategic growth thrust. Nulandis is a leading agrochemicals solution provider in South Africa. It develops, formulates and distributes its own in-house product range and is a distributor for key multinational suppliers and other strategic partners.
"FOL has been our customer for 20 years," says Edwin Ludick, Chemicals Executive at AECI and Chairman of Nulandis "so we have a long-established relationship. FOL is now a leader in Malawi's commercial estates market and revenue from the smallholder market segment is increasing. This fits extremely well with Nulandis' own growth strategy, including greater focus on the smallholder market in Africa.
"The acquisition of FOL provides Nulandis with a springboard into this market segment in Malawi and in other countries in Southern and East Africa. In addition, there will be further opportunities for Nulandis to expand sales of its in-house products through FOL. I am also pleased that Robert Renshaw, FOL's Managing Director, will remain in the business for at least the next two years."
"Africa's need to produce more food is pressing," adds Mark Dytor, Chief Executive of AECI. "In many instances, however, crop yields are far from optimal and agrochemicals use is either inadequate or inefficient. We believe our products and expertise can make a difference in this regard across all segments of the agricultural sector, including the very important smallholder market where our interface will be enhanced by the FOL acquisition."
AECI Executive and Chairman: Nulandis
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