The acquisition of Deroose brings a multinational company, more than 2.11 million square feet of business in laboratory and greenhouse facilities, and a unique portfolio. Genetic IP for plantations and food crops
Deroose’s unaudited 2021 annual revenue was $ 40.5 million EBITDA is about US $ 4.2 million
Vancouver, British Columbia, March 10, 2022 (GLOBE NEWSWIRE) — AgriFORCE Growing Systems Ltd. (“Company”) (NASDAQ: AGRI; AGRIW)Focusing on intellectual property (IP) focused on promoting sustainable cultivation and crop processing across multiple disciplines, AgTech is one of the largest tissue culture and breeding companies, Deroose Plants NV (“Deroose”). ) Has signed a binding agreement to acquire. A world that occupies a leading position in horticulture, plantation crops, fruits and vegetables.
Founded in 1980, Deroose operates multinational companies in Europe, North America and Asia with over 2.11 million square feet of laboratory and greenhouse facilities.1And more than 800 employees2.. Deroose’s unaudited 2021 revenue was $ 40.5 million((((3). EBITDA is about US $ 4.2 million ((((Four)...
A binding LOI is subject to the completion of standard due diligence and the conclusion of a final purchase agreement. This includes commercially standard conditions, including but not limited to representations and warranties, terms, default events, and termination conditions.
The net purchase price from AgriFORCE is expected to be approximately US $ 69 million. The purchase price is approximately $ 46.4 million for the Deroose business on a cash and debt-free basis and $ 22.6 million for the IP portfolio.
The acquisition of Deroose by AgriFORCE is expected to bring the following strategic benefits:
- Strengthen AgriFORCE’s integrated AgTech business model by providing a leading position in tissue culture growth and plant culture. This includes a robust IP portfolio aimed at reducing the environmental footprint and increasing yields.
- AgriFORCE and Deroose promote further growth in the core market for horticulture, plantation crops, fruit and vegetable development and trade, and promote genetic improvement and yield improvement based on Deroose’s IP.
- Based on Deroose’s strong financial performance and consistent growth in multiple locations around the world, AgriFORCE and Deroose plan to grow further through expansion into new high value crops.
Ingo Mueller, CEO of AgriFORCE Growing Systems, commented: Our vision to become a global leader in providing next-generation food and plant products to businesses and consumers. Our two companies are strongly committed to transforming the agricultural industry through IP, innovative technologies and expertise that reduce environmental impact and enable cleaner and better crops. Deroose’s specific crop IP allows you to increase the yield per hectare of crops such as rubber, palms and bananas.This is especially important if there is a shortage of arable land and it is limited.((((Five). And the government no longer allows additional land to be made available for these crops. We are confident that this will enable AgriFORCE and Deroose to provide value by maximizing the sustainability and productivity of available land, especially in tropical climates. In addition, Deroose’s IP is a potential competitor entry given its strong patent rights and the general schedule for researching and developing such processes that could easily exceed 10 years. We believe it provides a barrier. Finally, the acquisition of Deroose offers opportunities to leverage a variety of business synergies, including building Deroose’s Florida campus and replicating Delphy’s R & D Innovation Center for the North American market. “
Maurice van Winden, CEO of Deroose Plants NV, said: Both our IP and vision are very complementary as we are committed to growth through the development of new plants, new cultivation technologies and the pursuit of new market opportunities. We are very excited to commercialize a new portfolio of genetics for plantations and food crops. We have invested in the development of this IP for over a decade and believe that we can significantly improve the environmental impact of these crops while providing the rubber and food industry with a very necessary source of supply. In addition, strengthening our foothold in North America and accelerating growth into new crops will be our strong focus in the coming years. “
(3) Spot exchange rate from Euro to US dollar in 2021: Average exchange rate in 2021: 1.183 USD
(4) EBITDA adjustment
|(US $ ‘000’s)|
|Income tax expenses||515|
|Items that are not regular||(735||).|
(5) United Nations General Assembly October 14, 2019
About Deroose Plants NV
Deroose Plants Group is a global supplier of young plant materials for growers and plantation owners. Breeding as a service is also offered to young plant breeders and breeders. The company has been actively engaged in tissue culture cloning of plants since 1980. Currently, Deroose Plants are produced in Europe, the United States (Florida), and locations in Asia. Deroose is one of the largest TC propagators in the world with over 800 employees.
AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI; AGRIW) is an AgTech company focused on developing and acquiring crop production know-how and intellectual property enhanced by advanced AgTech facilities and solutions. With the aim of serving the global market, our current focus is on North America, Europe and Asia. AgriFORCE’s vision is to be a leader in delivering plant-based foods and products through an advanced and sustainable AgTech solution platform that will bring positive change to the world, from seeds to dining tables. AgriFORCE Goal: Clean. green. Better. For more information on AgriFORCE, please visit www.agriforcegs.com.
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This press release contains forward-looking statements in the sense of the “safe harbor” clause of the Private Securities Litigation Reform Act of 1995. Any statements other than the historical facts contained in this press release may constitute forward-looking statements and are not warranties. Describes future performance, conditions, or consequences and involves many risks and uncertainties. Actual results may differ materially from those described in the future outlook as a result of many factors, including those that are occasionally stated in documents submitted to the Securities and Exchange Commission, etc. We undertake no obligation to update any forward-looking statement contained in this document. All forward-looking statements are provided only as of the date of this press release.
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1 According to management’s previously audited financial statements.
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AgriFORCE Growing Systems has announced a binding LOI to acquire Deroose Plants NV, one of the world’s largest tissue culture and breeding companies. CanadianBusinessJournal
Source link AgriFORCE Growing Systems has announced a binding LOI to acquire Deroose Plants NV, one of the world’s largest tissue culture and breeding companies. CanadianBusinessJournal