Arysta LifeScience Corp. Receives Investment from Olympus Capital to Finance Series of Acquisitions and Strengthen Arysta's Position as One of the World's Leading Agrochemicals Companies
2002-09-26
Tomen Corp., Nichimen Corp. and Arysta LifeScience Corp. jointly announced today that Arysta LifeScience will increase its capital by up to ¥36 billion over the next 3 to 4 years to enhance its expansion in the global agrochemical business. Arysta is Tomen's subsidiary in the life science business. On September 15, 2002, funds controlled by Olympus Capital Holdings Asia, a leading Asian private equity fund manager, agreed to the investment in Arysta.
After the initial investment by Olympus in Arysta, the new partnership will consist of Tomen Group (51.9%), Nichimen (36.5%), Toyota Tsusho (1.8%), UFJ Bank (0.9%) and Olympus (8.7%). Arysta's shareholders currently consist of Tomen Group (57%), Nichimen Corp. (40%), Toyota Tsusho Corp. (2%) and UFJ Bank Ltd. (1%). Olympus' investment also includes convertible instruments that would significantly increase its interest in the company on a fully-diluted basis.
Arysta will increase its capital by issuing new shares and convertible notes with share acquisition rights. Under the agreement, by September 30, 2002, Olympus will purchase Arysta's ordinary shares valued at ¥8.4 billion and will also purchase US$10 million (approximately ¥1.2 billion) in notes with share acquisition rights. Including these transactions, Arysta, together with Olympus, plans to increase the company's capital by up to approximately ¥36 billion (US$300 million) over the next 3 to 4 years, with the bulk of the capital dedicated to additional acquisitions in the agrochemicals sector.
Olympus Capital Holdings Asia is an investment management firm focused on private equity investments in companies operating in Asia with offices in Tokyo, Hong Kong, New York, Seoul and Singapore. Olympus Capital Holdings Asia has made significant investments in some 20 companies in Asia since 1997.
The new investment will be used to accelerate Arysta's global penetration via a continued program of acquisition in agrochemicals. On September 16, 2002, Arysta agreed to acquire the worldwide licensing right of the wheat herbicide EVERESTR (common name "Flucarbazone") from Bayer CropScience of Monheim, Germany. The agreement is conditional upon approval by the Federal Trade Commission and the Canadian Competition Bureau.
Arysta has a five-year growth program which includes aggressive investment plans through acquisitions of agrochemicals for the period 2002 to 2004. Arysta has already expanded its product range this year by acquiring the worldwide licensing rights to Bayer's new broad-spectrum corn and sugarcane herbicide, Amicarbazone, and Syngenta's established insecticide Evisect. In addition to this new product lineup, Arysta plans further acquisitions of agrochemicals during this fiscal year.
Mr. Yoshiaki Ueki, president of Arysta LifeScience Corp., said, "Our new partnership with Olympus will further strengthen Arysta's global strategy and move the company forward ambitiously in the agrochemical industry."
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