Go4Europe 2013
“Cross Border M&A in Agriculture”
RB Halaby
Chairman
AgriCapital Corporation
October 28th, 2013
1
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
13
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
19
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
20
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
26
Cross-border M&A in Agriculture
23
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
Cross-border M&A in Agriculture
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AgriCapital Contact Information
R.B. Halaby
Chairman
AgriCapital Corporation
1410 Broadway, Suite 1802
New York, NY 10018
Email: halaby@agricapital.com
Telephone: (212) 944-9500
www.agricapital.com
Cross-border M&A in Agriculture