India's United Phosphorus Limited acquires 51% stake in crop protection company DVA Agro Do Brasil for US$150M, to broaden portfolio, gain access to larger market in Brazil

MUMBAI , July 26, 2011 (press release) – United Phosphorus Limited (UPL) today announced that it has acquired a 51% stake in DVA Agro Do Brasil (DVA Agro Brazil), a Brazilian company, from DVA Group, Germany and other shareholders. The balance 49% will continue to be held by the existing shareholders.

DVA Agro Brazil based out of Campinas, São Paulo state in Brazil is engaged in the production, marketing, selling and distribution of crop protection products and specialties in the Brazilian agrochemicals market. It has a formulation plant in Brazil with expansion plans currently under execution to build capabilities in different crop protection product categories. DVA Agro Brazil had a net revenue of approximately US$ 130 million for the year ending 31st December 2010. (

"The company will enhance its existing profile of German excellence in processes with Brazilian know-how in agribusiness by adding Indian expertise in business, technology and manufacturing. Our business and cultural diversity will be one of our key differentials. With UPL, we will further develop solutions that provide higher value added to our clients, while at the same time, considerably broaden our existing portfolio, "said Matthias Damm, CEO of DVA Group, Germany.

“This marks our second entry into the Brazilian crop protection market. DVA Agro Brazil’s distinguished crop focus gives UPL access to a larger addressable market in Brazil. DVA Agro Brazil is a young company which started operations in 2005 and has experienced exponential growth since then. The management team comprises of highly experienced and skilled personnel from the crop protection industry.” said Jai Shroff, Global CEO, UPL.

"Undoubtedly, UPL will provide us the additional capabilities to achieve a new level, by expanding opportunities and allowing us to broaden our portfolio to fully service and provide solutions to the market we serve. With UPL, we intend to grow faster than the overall market over the next few years.," said Carlos Pellicer, General Manager of DVA Agro Brazil.

UPL’s acquisition of 51% will be against an immediate cash outlay of around US$ 150 million which will be accomplished through primary infusion of funds in DVA Agro Brazil and secondary purchase of shares from the existing shareholders.

UPL is the largest Indian agrochemical Company and is engaged in research, manufacturing, marketing, sales & distribution of agrochemicals and specialty chemicals across the globe. The Company’s revenue for the year ended 31st March 2011 was about US$ 1,318 million ( This is the second acquisition of UPL in the current financial year following the acquisition of a strategic (50%) stake in Sipcam Isagro Brazil in April 2011 this year.

The German group DVA operates worldwide for over 40 years marketing products of the highest quality and technology to agriculture, nutrition, human and animal health and plastics. In Brazil, DVA operates through DVA Agro Brazil with a differentiated product line of post-patent crop protection and nutrition products.

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