Agrochemical firm completes sale of discovery division
A Cheshire-based agrochemical company has sold its discovery division to a Belgian group for an undisclosed sum.
Redag Crop Protection, which operates from Alderley Park, concluded the deal with Globachem NV.
Redag retains lead assets for continued development to commercialisation with the deal providing partial exit for Redag’s UK Investors.
Globachem Discovery Ltd, the new name of the acquired company, will enhance and strengthen Globachem Group capabilities in research and development.
The partial sale will allow Redag to focus on the development of its two lead assets, a broad spectrum herbicide and a potato blight fungicide, with a view to licensing them once further field trials and data packages have been created.
Bill Thompson, chief executive of Redag Crop Protection, said: “We are delighted to announce this deal with Globachem.
“Following a period of success since we started up in 2014 in discovering active compounds, protecting the IP and securing collaboration deals, this part-sale enables us to accelerate development of our two lead assets to address the global challenge of food security.”
He added that the industry has seen a declining number of compounds in development following a period of consolidation across large agrochemical companies, alongside an increasing number of compounds being deregistered or withdrawn for health, safety or environmental reasons.
“Right across the industry there is a strategic need for new compounds to replace the older compounds,” he said, explaining it could be in the provision of greater safety or new modes of action.
Koen Quaghebeur, president of Globachem, said: “Globachem is committed to develop innovative crop protection products.
“Having been introduced to Redag Crop Protection, we identified an opportunity to bring their significant expertise in-house.
“This will enable Globachem to become an innovative global player in crop protection chemistry and provide Globachem with a valuable end-to-end development and supply business.”
Norman Molyneux, founder of Acceleris Capital and non-executive director of Redag Crop, has been involved in several funding rounds for the company since incorporation.
He said: “We are delighted that we have been able to conclude this transaction with Globachem which provides Redag with the funds to focus development of its lead assets.
“There is a clear product innovation requirement within the agrochemical industry and a ready base of customers seeking novel compounds to commercialise in the market.
“We are proud to have assisted in the growth of Redag from start-up and look forward to securing further returns for the company’s shareholders from its retained assets.”
Redag was advised by Acceleris (corporate finance), Slater Heelis (legal) and Fairhurst (tax advice and financial and tax due diligence).
