AgroFresh Solutions, Inc. (NASDAQ: AGFS), a global leader in produce freshness solutions, today announced that it has signed a definitive agreement to acquire a controlling-interest in Tecnidex, a leading provider of post-harvest fungicides, waxes, and biocides for the citrus market. With this acquisition, AgroFresh expands its industry-leading post-harvest presence into additional crops, and increases its penetration of the produce market in southern Europe, Latin America and Africa.
For over 35 years, Tecnidex has been helping fruit and vegetable producers offer clean, safe and high-quality products to its regional clients in 18 countries. Through its portfolio of post-harvest products, technology, consulting, and after-sale services, Tecnidex improves the quality and value of its clients’ fruit and vegetables while respecting the environment. Tecnidex is based in Valencia, Spain.
“Tecnidex has an exceptional reputation and a long track record of success in the citrus market. Its portfolio of fungicides, waxes, and biocides both complements AgroFresh’s existing post-harvest business and significantly accelerates our crop diversification strategy,” said Jordi Ferre, Chief Executive Officer of AgroFresh. “Both companies share a strong and passionate focus on providing innovative solutions for our customers, and both have grown through the hard work of employees dedicated to improving produce quality and reducing waste in the value chain. Tecnidex is our first step in executing our acquisition strategy to strengthen our core, achieve crop diversification, and accelerate growth. In addition, it adds innovative solutions for our global customers, reduces our seasonality, and immediately adds to our earnings.”
AgroFresh will use its existing cash to purchase 75 percent of Tecnidex, with the balance being retained by Mr. Manuel Garcia-Portillo, Chairman and owner of Tecnidex. AgroFresh has an option to purchase Mr. Garcia-Portillo’s interest over time. The transaction is expected to be immediately accretive to AgroFresh and to close by the end of 2017.
“I am delighted to enter into this agreement with AgroFresh, which I believe is ideally suited to continue the rapid global expansion Tecnidex has achieved over the past few years,” said Manuel Garcia-Portillo, Chairman of Tecnidex. “Both AgroFresh and Tecnidex have multiple food preservation solutions that improve the quality and extend the life of a multitude of crops. This agreement will allow Tecnidex to offer our existing customers an expanded portfolio of products while leveraging AgroFresh’s global distribution network to accelerate our growth in geographies we have only begun to penetrate.”
This partnership delivers on AgroFresh’s promise to leverage its strong financial position to create value for shareholders, by expanding its range of integrated solutions designed to help improve the lives of everyone in the food value chain—and the world.
AgroFresh: advancing the future of freshness.
AgroFresh Solutions, Inc. (NASDAQ: AGFS) is a global industry leader in providing innovative data-driven specialty solutions aimed at enabling growers and packers of fresh produce to preserve and enhance the freshness, quality and value of fresh produce and to maximize the percentage of produce supplied to the market relative to the amount of produce grown. Its flagship product is the SmartFresh™ Quality System, a freshness protection technology proven to maintain firmness, texture and appearance of fruits during storage and transport. SmartFresh is currently commercialized in over 40 countries worldwide. Additionally the company has a number of different solutions and application technologies that have either been launched (Harvista, RipeLock, LandSpring) or will be launched in the future that will extend its footprint to other crops and steps of the global produce supply chain. For more information, please visit www.agrofresh.com.
In addition to historical information, this release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements and are identified with, but not limited to, words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions (or the negative versions of such words or expressions). Forward-looking statements include, without limitation, the Company’s possible or assumed future results of operations, including all statements regarding anticipated future growth, adoption of the Company’s products, business strategies, competitive position, industry environment, potential growth opportunities and the effects of regulation. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s management’s control that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks include, without limitation, the risk that our proposed acquisition of Tecnidex may not yield the results expected; the risk of increased competition; the ability of the business to grow and manage growth profitably; changes in applicable laws or regulations, and the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors. Additional risks and uncertainties are identified and discussed in the Company’s filings with the SEC, which are available at the SEC’s website at www.sec.gov. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.