On March 29, 2016 (German time), Kingenta Ecological Engineering Group Co., Ltd., (“Kingenta Group“) entered into a share purchase agreement with Compo AcquiCo S.à.r.l. through its wholly-owned sub-subsidiary, Kingenta Investco GmbH, Kingenta Group will acquire all shares in 24 companies engaged in household horticulture business, including Compo GmbH, Compo France, Compo Italy, all of which are owned by Compo AcquiCo S.à.r.l. (known collectively as "Compo Consumer Group"). Total consideration to be paid is 116 million EUR. As the exclusive M&A consultant of Kingenta Group, the consulting team of Eurasian Consulting has provided their advice and suggestions with professional business skills and rich experience during the acquisition process and contributed to the final completion of the Transaction.
Kingenta Ecological Engineering Group Co. Ltd. is a public listed company, which principally engages in the manufacturing and distribution of slow- and controlled-release, water soluble and other specialty fertilizers. Kingenta Group distributes its products mainly in the Chinese market and exports to South Korea, Japan, Australia and Malaysia. The buyer, Kingenta Investco GmbH, is a company incorporated under the laws of Germany. It is a wholly-owned subsidiary of Kingenta Group. Kingenta Group holds its 100% of shares through another wholly-owned subsidiary, Ningbo Meishan Free Trade Port Area Kingenta Investment Limited.
COMPO Consumer Group is Europe’s largest supplier of home gardening fertilizer and plant protection products with an R&D level ranking among the forefront of the industry. The business is renowned for its European leading brand and comprises a mature global marketing network. The target of this Transaction is the consumer business entities of COMPO Consumer Group owned by Compo AcquiCo S.à.r.l. Its market operations can be divided into two regional clusters, “Central Europe” and “South-West Europe”. The cluster “Central Europe” comprises the countries Germany, Austria, Switzerland and other countries. The cluster “West-South Europe” mainly includes the countries Belgium, France, Italy and Spain. COMPO Consumer is Europe’s leading home and garden products company specialized in manufacturing, processing and selling of a wide range of products from potting soil to garden and lawn fertilizers, lawn seeds as well as plant care and plant production products. The business has over 600 employees worldwide.
Through the acquisition of Compo Consumer, Kingenta Group quickly gained the biggest production capability of household horticulture and plant protection products in Europe, a worldwide marketing network and a brand with international influence. It is a significant step for the internationalization strategy of Kingenta Group.
