UPDATE 1-Nufarm buys US, UK pesticides groups, sees strong H1

(Adds details, fund manager comment)

MELBOURNE, March 5 (Reuters) - Australian farm chemicals group Nufarm Ltd (NUF.AX: Quote, Profile, Research) bought UK pesticides group AH Marks Holdings Ltd and agreed to buy privately owned U.S. group Etigra LLC for a total of A$175 million ($162 million), to expand its weed-killing business.

The company also said on Wednesday it expects a net profit of A$35.4 million before one-offs for the six months to Jan. 31, more than five times the level in the same period a year earlier. It is due to report its results on March 27.

The acquisitions include A$61 million in debt assumed from AH Marks, taking the total cost to A$236 million.

Nufarm said it is looking to raise A$200 million by selling new shares to institutional investors to fund the two acquisitions and provide working capital, and would raise up to A$25 million from its retail shareholders.

Nufarm's share sale was likely to appeal to investors who see strong prospects for global agriculture, said Peter Chilton, an analyst with Constellation Capital Management.

"It's definitely a growth area," Chilton said.

AH Marks and Etigra together are expected to add A$5 million to Nufarm's profit this year and A$24.7 million in the financial year ending July 31, 2009, boosting its earnings per share by 5 percent, based on its expanded share base.

Nufarm said AH Marks would give it a bigger market in phenoxy herbicides, increasing its production capacity, expanding supply relationships with major companies and giving it new brands, while Etigra would give it a bigger distribution platform.