(Reuters) - Platform Specialty Products Corp (PAH.N) said it would buy Arysta LifeScience Ltd for about $3.51 billion, Platform’s third acquisition this year as the company looks to strengthen its agrichemicals business.
Platform is buying Arysta from funds backed by London-based private equity firm Permira.
Arysta is a global provider of insecticides, fungicides, herbicides, biostimulants and value-added nutrients and reported net sales of $1.5 billion in 2013, Platform said on Monday.
More than 65 percent of Arysta’s sales are in high-growth regions such as Latin America, Africa, Central and Eastern Europe, China and South Asia.
Platform said it expected the deal to immediately add more than 20 percent to its 2014 adjusted earnings per share before synergies.
Activist shareholder William Ackman’s Pershing Square Capital Management LP is the largest shareholder in Platform Specialty with about 31 percent stake, according to Thomson Reuters data.
Permira bought Arysta in 2008 for 1.95 billion euros ($1.32 billion at the time).
Dublin-based Arysta in September registered with the U.S. Securities and Exchange Commission to float on the New York Stock Exchange.
Arysta’s Chief Executive Wayne Hewett is expected to join Platform as president to lead its three agrochemical businesses, Chemtura AgroSolutions, Agriphar, and Arysta, Platform said.
The deal, expected to be funded through a combination of cash on hand, debt, and equity, is expected to close in the first quarter of 2015.
Platform said in April it would buy Chemtura’s CHMT.N agrichemicals business for about $1 billion. The company in August announced a deal to buy Europe-based agrochemicals group Agriphar for 300 million euros ($383 million).
Credit Suisse, Barclays, UBS Investment Bank and Nomura Securities International were M&A advisers to Platform, while Greenberg Traurig and Kane Kessler were its legal advisers.
Morgan Stanley acted as lead financial adviser, J.P. Morgan as co-financial adviser to Permira, while Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel.
Platform shares closed at $24.29 on the New York Stock Exchange on Friday. Up to Friday’s close, the shares had risen more than 73 percent this year.
Reporting By Shubhankar Chakravorty in Bangalore; Editing by Don Sebastian and Sriraj Kalluvila