DKSH acquires SACOA in Australia, further expanding its Performance Materials business
Zurich, Switzerland, April 30, 2021 – DKSH today announced the acquisition of Australian agrochemicals distributor and blender SACOA, further expanding its Performance Materials business in Asia Pacific. The own-brand acquisition is in line with DKSH's strategy to further diversify its value-added service offering and will raise the company to a leading position in the distribution of specialty agricultural chemicals in Australia.
SACOA is a leading Australian formulator of premium agricultural crop protection products. Founded in 1994, the family-owned business develops, formulates and sells spray oils and adjuvants to a long-term customer base of agricultural distributors, resellers and farmers. The product range is supported by industry and academic research and field trial programs as well as proprietary and trademarked brand names.
To support sustainable farming in Australia, SACOA products improve the effectiveness of agricultural goods, lowering costs; reduce spray frequency by solving tank mix compatibility issues; and increase water retention in non-wetting soils, thereby improving germination rates. SACOA's portfolio is highly complementary to DKSH's product portfolio, recently enhanced through the 2020 acquisition of Axieo, including its subsidiary SST, a leading supplier of adjuvants and spray additives, in Australia and New Zealand.
Thomas Sul and Natale Capri, Co-Heads Business Unit Performance Materials at DKSH, jointly said: "By acquiring SACOA, we actively drive forward market consolidation in the specialty chemicals industry in Asia Pacific. With this move, we will become a leader in the market of specialty agricultural formulations and blends in Australia – a sector with attractive expansion opportunities, also outside of the region. We welcome all of SACOA's employees and look forward to growing together with them."
SACOA is expected to generate net sales of around CHF 15 million¹ at good profitability and return on capital. The acquisition is immediately earnings-accretive and DKSH will acquire 100% of the business. SACOA will be fully integrated into DKSH and the sales teams will be merged to create revenue synergies.
Justin Matthews, CEO and founder of SACOA, added: "For more than 25 years, we have been developing premium specialty agricultural chemicals in Australia. By combining DKSH's international expertise and SACOA's local experience, we generate more value for our customers. We look forward to joining DKSH."
¹ Based on an AUD / CHF exchange rate of 1.40.