Permira in talks to sell Arysta to Platform Specialty – report

According to The Wall Street Journal, US-headquartered Platform Specialty could acquire its rival for around $3.5 billion, including debt.

Arysta - which makes insecticides, weed killers and plant-nutrition products - was formed in 2001 when the life-sciences divisions of Japan's Tomen Corp. and trading company Nichimen Corp, owned by Sojitz Holdings Corp, combined. Permira bought the business from Olympus Capital in 2007 for around $2.2 billion and moved its headquarters to Dublin from Tokyo last year.

Arysta was said to be targeting as much as $500 million through the IPO, which would value the company at around $4 billion.

Its global sales span Japan, China, Southeast Asia, Latin America, Africa, Europe and North America. Sales came to $1.51 billion in 2013, up from $1.47 billion the previous year, but the company remained unprofitable. Net losses narrowed to $93.4 million from $152.1 million in 2012.

According to consultancy Phillips McDougall, the global agrochemical market was estimated at $54 billion in 2013, growing at a CAGR of 6.8% between 2003 and 2013. Key market categories include herbicides, insecticides and fungicides.

Platform Specialty produces high-tech specialty chemical products and technical services, primarily used by the electronics, metal and plastic plating, graphic arts and offshore oil production and drilling industries. It was founded as a shell company and went public on the London Stock Exchange last year. Platform Specialty is now also listed in New York.

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