Chemical supplier Nufarm has agreed to pay $691 million for a European portfolio of crop protection products, and has its eye on another acquisition.
The purchase announced on Tuesday includes established brands of herbicides, fungicides, insecticides, seed treatments and plant growth regulators sold in 29 countries including Germany, Spain, France and Italy.
Nufarm said the acquisition from Adama Agricultural Solutions, Syngenta Crop Protection and related companies covered more than 50 formulations and more than 260 registrations.
Nufarm said it will also have access to additional registrations for new products currently being reviewed for regulatory approval.
The company plans to fund the deal using $272 million from existing debt facilities and a $446 million fully underwritten equity raising.
It expects the portfolio to contribute roughly $250 million in net sales and between $95 million and $100 million in earnings in the 2019 financial year.
Chief executive Greg Hunt said the acquisition will strengthen the supplier's presence in Europe, where it generates its highest crop protection margins.
"We will extend our reach into the European market via both a more significant position with existing distribution customers, and by accessing new customers," Mr Hunt said.
Nufarm revealed it is currently also in exclusive discussions with another party to acquire a crop protection portfolio for less than $US100 million ($A128 million).
It said it expects to finalise this acquisition in the coming weeks.
