Eurasian Consulting

ReferencesReferences

Kingenta acquired Ekompany

Client

Kingenta Ecological Engineering Group Co., Ltd. (“Kingenta Group”)
Kingenta Group was established in 1998. The company is devoted to the R & D, production and marketing of specialty fertilizers including compound fertilizers (CF), slow/controlled-release fertilizers (SCRF), water soluble fertilizer (WSF) and other advanced solutions. It owns the biggest production base for SCRF worldwide. The company currently owns a total assets of 11 billion CNY and more than 10,000 staff, with an annual production capacity of 7 million tons. Kingenta Group was listed on Shenzhen Stock Exchange since 2010 (SHE: 002470). The company generated a sales of 17.74 billion CNY in 2015.

Project outline

· Buyer: EKOMAPNY INTERNATIONAL B.V., which was set up by the wholly-owned subsidiary of Kingenta Group – Kingenta (Hongkong) Investment Co., Ltd. in the Netherlands
· Seller: Mr. A.J.VAN BERGEN, the asset manager of EKOMPANY AGRO B.V.
· Target: EKOMPANY ARGO B.V. is a Dutch company which was established in 2010. The company is specialized in the production of coated slow controlled release fertilizer and blending controlled release fertilizer. It owns a production line of coated slow controlled release fertilizer with an annual capacity of 40,000 tons and a production line of blending fertilizer with an annual capacity of 60,000 tons. The production line was put into production in 2013 and it occupies 45% of the total production capacity of coated slow controlled release fertilizer in Europe. The coating technology of EKOMPANY possesses the characteristics of clean, safe, sustainable and energy-saving etc. This technology is used for producing high-tech and energy-saving control release fertilizer, which is widely used in the field of agriculture and horticulture with remarkable results.
· Our service: Successful support in the whole M&A process as exclusive M&A buyer consultant, including valuation of assets and preparation of Indicative Offer, organization and coordination of due diligence team and business negotiations with the Seller and the real estate leasing party etc.
· Asset Purchase Agreement signed on Jan. 29th, 2016

Highlights

· Assisted the client in the successful completion of its first M&A project in Europe
· Through the acquisition, Kingenta quickly acquired a production base of coated fertilizer with the biggest production capacity in western Europe and the site is the first foothold of Kingenta to expand its innovative fertilizer business in Europe
· Full participation in post-integration

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