Syngenta has bought leading Israeli seed company Zeraim Gedera from Markstone Capital Partners, the Israeli private equity group.
Syngenta will buy all outstanding shares in the company from Markstone for a consideration of $95 million (£47.16m), subject to closing adjustments. Zeraim's sales in 2006 were £16.4m.
The transaction is anticipated to close at some point before the end of 2007, following receipt of regulatory approvals. During this period, Zeraim Gedera’s management will visit its business partners to inform them about the deal and the intended structure of the organisation in more detail.
The acquisition will reinforce the growth and quality of Syngenta’s vegetable seeds business, said Mike Mack, chief operating officer Syngenta Seeds: “This acquisition further expands Syngenta’s position in high-value growth segments. Zeraim Gedera’s portfolio and its strong presence in Mediterranean markets ideally complement our vegetable seeds business.”
“The Zeraim brand will sit under the Syngenta umbrella, alongside S&G®, Rogers® and Daehnfeldt® and will continue to stand for innovation, high quality products and valued customer service,” said a statement.
Zeraim Gedera was originally founded in 1952. The business will continue to trade under the Zeraim brand. Ohad Zuckerman, Zeraim’s president & ceo, said: “Thanks to our efforts to focus on few high value crops and market segments over the last years, we have achieved strong growth and successfully established our Zeraim Gedera brand in many markets. Our very close collaboration with Israeli research institutes and particularly our great personal and long-lasting relationships with leading Israeli scientists have been very instrumental to this growth.
“We will now pursue and even further accelerate this growth by accessing Syngenta’s capabilities and expertise. We will also continue to invest in and extend our collaboration with Israeli research institutes.”
The three companies
• Zeraim Gedera is an Israeli seed company focused on “high end” products, including tomatoes, peppers and melons, for consumers and growers. The company’s primary focus is both on breeding fruit with the characteristics required by consumers, such as superior taste, nutritional value and long shelf-life and the traits that most interest growers, such as high yield and resistance to disease. Zeraim is active mainly in the Mediterranean Basin, North America and China and employs 215 people.
• Syngenta is a world-leading agribusiness committed to sustainable agriculture through innovative research and technology. The company is a leader in crop protection, and ranks third in the high-value commercial seeds market. Sales in 2006 were approximately $8.1 billion. Syngenta employs around 21,000 people in over 90 countries.
• Markstone Capital Partners is Israel’s biggest private equity fund. Since its establishment in January 2004 by three partners, it has already invested in seven leading Israeli companies. The fund focuses on “traditional economy” Israeli companies and Markstone has two offices, in Israel & the US.
