Go4Europe 2013 “Cross Border M&A in Agriculture”
RB Halaby Chairman AgriCapital Corporation October 28th, 2013
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Drivers of Agriculture
Demand Technology Globalization
Cross-border M&A in Agriculture
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Drivers of Agriculture - Demand World population is expected to reach more than 9 billion by 2050.
Demand for food will double.
Cross-border M&A in Agriculture
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Drivers of Agriculture - Demand More people eating better food
Consumers becoming more demanding • •
Health Food safety
Cross-border M&A in Agriculture
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Drivers of Agriculture - Demand By 2050 global per capita income is expected to increase to nearly three times the 2005 level. Creates more and more higher-income consumers.
Cross-border M&A in Agriculture
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Drivers of Agriculture - Demand
Cross-border M&A in Agriculture
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Drivers of Agriculture -Technology
“To meet the increasing demand from a growing population, we will need to produce more food in the next 40 years than has been produced in the previous ten thousand years. – Jason Clay, Senior VP WWF Source: USDA-NASS. 2012. Crop Production. United States Dept. of Agr - Nat'l Ag. Statistics Service, Washington, D.C.
Cross-border M&A in Agriculture
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Drivers of Agriculture -Technology Produce more for less Innovation driven by environmental limitations such as: •
Land erosion
•
Limited useable water
Cross-border M&A in Agriculture
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Drivers of Agriculture -Technology The Productivity of America’s Farmers: Number of People Fed Annually by One American Farmer
Cross-border M&A in Agriculture
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Drivers of Agriculture -Technology U.S. Adaption of GM Field Crops: 1996 - 2007
Cross-border M&A in Agriculture
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Drivers of Agriculture -Technology Integrated Farming Systems
Source: Monsanto Ag Science 2012
Cross-border M&A in Agriculture
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Drivers of Agriculture -Technology
Galileo Wheel Ltd. A Revolutionary Approach to Tire Design
Galileo 2012
Diagonal Ply 1898
Radial 1949
Lesser soil compaction Better traction Higher mileage Cross-border M&A in Agriculture
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Drivers of Agriculture -Technology Agriculture Food Chain
Technology
• Animal Genetics • Genomics • Plant & Animal Biotechnology • Irrigation Technology • Precision Agriculture • Seed & Plant Genetics
Inputs
Production
Processing
Distribution
• Animal Health
• Aquaculture
• Biofuel
• Ag Retailers
• Animal Nutrition & Feed
• Beef
• Grain Milling
• Dairy
• Meat Packing
• Cold Chain & Food Logistics
• Grain
• Oilseed Crushing
• Crop Protection Chemicals • Farm Equipment Manufacturing • Process Equipment Manufacturing
• Greenhouse & Nursery • Horticulture
• Permanent Crops
• Farm Finance
• Pork
• Information Systems
• Fertilizer & Plant Nutrition
• Poultry & Egg
• Identification & Traceability
• Grain Handling Equipment
• Vegetable, Fruits & Nuts
• Food Safety
• Risk Management
Cross-border M&A in Agriculture
• Produce & Packing • Rendering & Waste Water
• Commodity Trading • Equipment Distributors • Grain Logistics
Retail
• OTC Animal Health Products • Consumer Garden Specialty • Consumer Pet Specialty • Pet Food
• Recycling
• Turf & Forage
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Drivers of Agriculture - Globalization Agriculture is agnostic – knows no border, nationality, religion, age, ethnicity, gender and color. Global Trade in Grain
Source: FAO, 2007 Cross-border M&A in Agriculture
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Drivers of Agriculture - Globalization Global Food & Feed Trade Projected to Surpass $1.6 trillion by 2022
Global Food & Feed Imports 1963 – 2022(p) 1,800 1,600
Billion US$
1,400
1,200 1,000 800 600 400 200
1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021
0
Source: FAOSTAT; USDA/FAS Projections Cross-border M&A in Agriculture
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Drivers of Agriculture - Globalization Food & Feed Exports Have More Than Tripled from Each Region over the Past Two Decades
Exports of Food & Feed by Region 1993 vs. 2012p North America
South America EU-27 Southeast Asia/Oceania 2012p 1993
East Asia South Asia MENA
Former Soviet Union Sub-Saharan Africa 0
50
100
150
200
Source: COMTRADE Cross-border M&A in Agriculture
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Drivers of Agriculture - Globalization Agribusinesses are consolidating and becoming more global.
Globalization of agribusiness is escalating • Companies are seeking economies of scale to maximize efficiency and take as much cost out of the system as possible. – Agriculture is unforgiving of inefficiencies.
• Governments seeking “guaranteed and stable” food supplies for their people. – e.g. Asian companies, in cooperation with government, developing relationships with US companies to source US grain.
• Increased sourcing and competition from international agribusinesses. Cross-border M&A in Agriculture
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Global Cross-Border M&A (all industry)
Source: Press Release mergermarket M&A Round up for 2012
Cross-border M&A in Agriculture
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Select Cross-Border M&A Deals (Israeli Ag) Select Cross-Border M&A Deals in Israeli Agribusiness Target Co.
Target Co. Dominant Country
Target Co. Sector
Buyer Co.
Buyer Co. Dominant Country
Buyer Co. Sector
Deal Value US$ (mm)
Rosetta Green Ltd., Substantially All Assets
Israel
Biotech
Monsanto
United States
Fertilizers and Agricultural Chemicals
37
5/14/2012
NaanDan Jain Irrigation C.S. Ltd.
Israel
Construction and Farm Machinery
Jain Irrigation Systems Limited
India
Construction and Farm Machinery
34
6/12/2011
Netafim Ltd.
Israel
Construction and Farm Machinery
Permira Advisers Ltd.
United Kingdom
Private Investment Firm
530
12/07/2010
The Scotts Company, LLC, Global Professional Business Unit
United States
Distributors
Israel Chemicals Ltd.
Israel
Fertilizers and Agricultural Chemicals
255
10/11/2010
Makhteshim Agan Industries Ltd.
Israel
Fertilizers and Agricultural Chemicals
China National Chemical Corporation
China
Diversified Chemicals
2797
7/9/2007
Zeraim Gedera Ltd.
Israel
Agricultural Products
Syngenta AG
Switzerland
Agricultural Products
95
11/13/2006
Hazera Genetics Ltd..
Israel
Agricultural Products
Vilmorin & Cie
France
Agricultural Products
n/a
Announce d Date
2/3/2013
Cross-border M&A in Agriculture
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Select Cross-Border M&A Deals (Agribusiness) Select Cross-Border M&A Deals in Agribusiness (2012-2013) Target Co.
Target Co. Dominant Country
Target Co. Sector
Buyer Co.
Buyer Co. Dominant Country
Buyer Co. Sector
Deal Value US$ (mm)
VION Ingredients Nederland (Holding) B.V.
Netherlands
Packaged Foods and Meats
Darling International Inc.
United States
Agricultural Products
2,173
Warrnambool Cheese And Butter Factory Company Holdings Limited
Australia
Packaged Foods and Meats
Saputo, Inc.
Canada
Packaged Foods and Meats
445
10/4/2013
Russian Quartz LLC
Russia
Precious Metals and Minerals
Sumitomo Corporation
Japan
Trading Companies
n/a
10/01/2013
Shamrock Seed Company, Inc.
United States
Agricultural Products
Vilmorin & Cie
France
Agricultural Products
n/a
9/9/2013
Hubei Sanonda Co. Ltd.
China
Fertilizers and Agricultural Chemicals
Makhteshim-Agan Industries Ltd.
Israel
Fertilizers and Agricultural Chemicals
283
8/10/2013
Seed Co
Zimbabwe
Agricultural Products
Vilmorin & Cie
France
Agricultural Products
n/a
8/5/2013
Joe White Maltings Pty. Ltd.
Australia
Agricultural Products
Cargill
United States
Agricultural Products
302
Announce d Date
10/7/2013
10/7/2013
Cross-border M&A in Agriculture
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Select Cross-Border M&A Deals (Agribusiness) Select Cross-Border M&A Deals in Agribusiness (2012-2013) Target Co.
Target Co. Dominant Country
Target Co. Sector
Buyer Co.
Buyer Co. Dominant Country
Buyer Co. Sector
Deal Value US$ (mm)
8/1/2013
Tyrrells Potato Crisps Ltd.
United Kingdom
Packaged Foods and Meats
Investcorp Bank B.S.C.
Bahrain
Investment Holding Co.
152
7/31/2013
Boyuan Group, Bodashidi Plant
China
Fertilizers and Agricultural Chemicals
LG Corp.
South Korea
Industrial Conglomerates
92
7/24/2013
EPAX A.S.
Norway
Pharmaceutic als
FMC Corp.
United States
Diversified Chemicals
345
7/11/2013
Siamakme Aquatic Feeds Co., Ltd.
Thailand
Packaged Foods and Meats
Cargill
United States
Agricultural Products
n/a
6/24/2013
Copeinca Asa
Norway
Packaged Foods and Meats
China Fishery Group Limited
China
Packaged Foods and Meats
903
5/29/2013
Smithfield Foods, Inc.
United States
Packaged Foods and Meats
Shuanghui International Holdings Limited
China
Packaged Foods and Meats
7,276
Announce d Date
Cross-border M&A in Agriculture
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Select Cross-Border M&A Deals (Agribusiness) Select Cross-Border M&A Deals in Agribusiness (2012-2013) Announce d Date
Target Co.
Target Co. Dominant Country
Target Co. Sector
Buyer Co.
Buyer Co. Dominant Country
Buyer Co. Sector
Deal Value US$ (mm)
4/15/2013
Dieckmann GmbH & Co. KG, Oilseed Rape And Rye Seed Business Areas
Germany
Agricultural Products
Monsanto
United States
Fertilizers and Agricultural Chemicals
n/a
2/5/2013
Locker Group Pty. Ltd.
Australia
Diversified Metals and Mining
Valmont Industries, Inc.
United States
Industrial Machinery
64
2/4/2013
Atlântica Sementes Ltda.
Brazil
Agricultural Products
Nufarm Limited
Australia
Fertilizers and Agricultural Chemicals
13
2/3/2013
Rosetta Green Ltd., Substantially All Assets
Israel
Biotech
Monsanto
United States
Fertilizers and Agricultural Chemicals
37
1/23/2013
Arabian Agricultural Services Co. Ltd., Existing Corn Milling Facility in Al Kharj
Saudi Arabia
Agricultural Products
Cargill
United States
Agricultural Products
n/a
Cross-border M&A in Agriculture
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Select Cross-Border M&A Deals (Agribusiness) Select Cross-Border M&A Deals in Agribusiness (2012-2013) Announce d Date
Target Co.
Target Co. Dominant Country
Target Co. Sector
Buyer Co.
Buyer Co. Dominant Country
Buyer Co. Sector
Deal Value US$ (mm)
1/8/2013
Link Seed (Pty) Limited
South Africa
Agricultural Products
Vilmorin & Cie
France
Agricultural Products
n/a
12/7/2012
Bunge Limited, Fertilizer Business in Brazil
Brazil
Fertilizers and Agricultural Chemicals
Yara International ASA
Norway
Fertilizers and Agricultural Chemicals
750
11/14/2012
Sunfield Seeds Inc.
United States
Agricultural Products
Syngenta AG
Switzerland
Fertilizers and Agricultural Chemicals
n/a
10/18/2012
GrainCorp. Ltd.
Australia
Agricultural Products
Archer Daniels Midland Company
United States
Agricultural Products
3,420
8/2/2012
Canadian Fertilizers Limited
Canada
Fertilizers and Agricultural Chemicals
CF Industries Holdings, Inc.
United States
Fertilizers and Agricultural Chemicals
911
3/20/2012
Glencore International plc, Agri-Products Business of Viterra, Inc.
Canada
Agri-product Retail
Agrium Inc.
United States
Fertilizers and Agricultural Chemicals
1,788
1/6/2012
Santal Equipamentos S/A Comércio e Indústria
Brazil
Construction and Farm Machinery
AGCO Corporation
United States
Construction and Farm Machinery
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Cross-border M&A in Agriculture
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Select Cross-Border M&A assignments Select AgriCapital cross-border advisory assignments.
Seeley, California Dessert Seed divested its onion breeding program to
Enkhuizen, The Netherlands We advised Dessert Seed
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AgriCapital Contact Information R.B. Halaby Chairman AgriCapital Corporation
1410 Broadway, Suite 1802 New York, NY 10018
Email:
[email protected] Telephone: (212) 944-9500 www.agricapital.com
Cross-border M&A in Agriculture
