Historic chemicals business sold in £75m deal
FAMILY-OWNED Yorkshire chemicals firm A H Marks has been bought by Australian group Nufarm for £75m.
The company, which is the UK’s largest privately-owned chemical manufacturer, is based in Bradford and was founded in 1877.
The £65m-turnover company which employs 330 people, has been acquired by Nufarm which is Australia’s biggest supplier of farm chemicals.
A H Marks has produced chemicals at its site in Wyke, Bradford, since 1877 when it began making dyes for the local textile industry.
It now produces chemicals used by manufacturers of crop protections, petrochemicals and biocides. Nufarm said it plans to invest in increasing production at the Wyke site and develop new products.
Exports account for more than 75% of the company’s business and it sells its products in more than 40 countries worldwide.
Members of the Marks family owned 22% of the company while the current four-strong management team led by managing director Ian McClelland, owned 78%.
Deloitte in Leeds acted for the majority shareholders in A H Marks and led a highly competitive sale process. The Deloitte team comprised Martin Jenkins, David Frith, Mark Keeley and Anil Gupta. A team from Eversheds in Leeds led by David Strachan also advised the A H Marks shareholders.
Mr Jenkins said: “The global agri-chemical market is rapidly consolidating and this transaction is a significant part of that process given the strong position A H Marks has developed in a number of niche global markets.”
Melbourne-based Nufarm also today announced the acquisition of US firm Etigra for £35m which is headquartered in North Carolina and makes products used to protect turf and herbicides used to control weeds in crops.
The group, which is listed on the Australian Stock Exchange, said the two acquisitions would help increase sales in the first half of 2008 by 70% to £462m and operating earnings before interest, tax, depreciation and amortisation would increase by 135% to £49.7m.
Net income in the six months ended Jan. 31 was A$4.6 million, compared to A$11.4 million a year earlier, the company said. It is scheduled to report earnings on March 27. The company said it was confident of meeting its full-year net profit target of about A$145 million.
Nufarm’s managing director Doug Rathbone said: “The addition of the A H Marks business expands our production capacity; enhances our product development opportunities, strengthens our global regulatory position; extends our supply relationships with other major companies; and provides additional brands for our portfolio of phenoxy herbicides.
“A H Marks has suffered from a lack of presence at the branded distribution level and its integration into Nufarm’s much broader geographic platform will add significantly to the value that can be extracted from its manufacturing and product positions.
“Nufarm plans to increase production at the Wyke manufacturing facility and support a number of new product development programs,” added Mr Rathbone.
