(Ecofin Agency) - South African company Omnia Holdings decided to divest its subsidiary Oro Agri as part of its business restructuring program. The unit, which Omnia acquired in 2018, specializes in the production and marketing of fertilizers and crop protection products.
Oro Agri operates research and development facilities in South Africa, Brazil, the United States, and Europe. It will be sold to Rovensa, a European company controlled by private equity funds. The acquirer has a business similar to Oro Agri's, namely the trade of bio-nutrition and crop protection solutions.
The two structures have agreed on a sale price equivalent to $146.9 million. This resource will help strengthen the capital of fertilizer producer Omnia Holdings and support its growth.
The finalization of the sales agreement is subject to approval from Omnia Holdings’ shareholders. Once completed, the acquisition will enable Rovensa to expand its geographic footprint into new markets while strengthening its business.