Corteva announced the signing of a definitive agreement to acquire Stoller Group, Inc., one of the largest independent biologicals businesses in the industry. Houston-based Stoller boasts a forecasted revenue for 2022 of $400 million with operations and sales in over 60 countries. Corteva believes the acquisition will bring immediate scale and profitability, according to a release.
The acquisition aligns with Corteva’s commitment to provide farmers with biological tools that aid in the evolution of farming practices and help them reach changing market expectations.
“Biologicals provide farmers with sustainably-advantaged tools that complement crop protection technologies, and collectively, can work to address global challenges around food security and climate change,” said Chuck Magro, chief executive officer at Corteva. “Stoller represents a leader in the biologicals industry given its commercial presence and market expansion potential, while also delivering attractive growth and operating margins. In combination with Corteva’s leading innovation organization, Stoller provides a platform for expanding and accelerating Corteva’s biologicals business to become one of the largest players in the rapidly expanding biologicals market.”
The biologicals market has seen exponential growth and is predicted to grow high-single digits annually leading up to 2035, representing 25% of the crop protection market, explained the release.
“In Stoller’s 50+ year history, we have successfully helped growers around the world increase their productivity and improve their sustainability. We are proud to join forces with Corteva as we share a vision of helping farmers succeed in growing the nutritious food the world relies on,” shared Guillermo de la Borda, Stoller’s chief executive officer. “This announcement is a true testament to the incredible success and dedication of our teams across the globe who have helped us become one of the most trusted biostimulant and plant health companies in the world. Our innovative solutions and deep expertise will continue to make an impact for years to come.”
Stoller marks Corteva’s second biologicals acquisition this year, following its definitive agreement to acquire the Murcia, Spain-based microbiological technology company Symborg.
A significant purchase price of $1.2 billion in cash stands for Stoller’s acquisition, representing an “enterprise value multiple of approximately 12x based on Stoller’s expected EBITDA for 2022 on a stand-alone basis,” said the release. The deal is set to close in the first half of 2023 after regulatory approvals are completed and satisfaction of customary closing conditions.
To provide more information on the transaction and Corteva’s biologicals strategy, the company will hold a live webcast on Monday, Dec. 5.