Elders acquires agri-chemical and nutrition manufacturer Eureka Group to strengthen supply chain
Elders Limited has acquired the assets of the Victorian based Eureka! Group in a bid to boost the flexibility and control of its crop protection supply chain.
Eureka is a research, development, registration and formulation business for agri-chemicals and other products, employing 35 staff based at two sites west of Melbourne, one devoted to herbicide and the other to non-herbicide products.
Elders chief executive Mark Allison said Eureka! generated an average annual revenue of $12 million during the last three years and the business was expected to add about $2m to the company’s consolidated earnings in the 2024 financial year.
He said the acquisition was part of Elders’ backward integration strategy and provided the company with industry leading capability in toll formulation, a pipeline of new products, and extension of its research and development activities.
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Mr Allison said the acquisition will provide the company with “added control and surety in its supply chain”.
“Reliable access to key agricultural products is of fundamental importance to our farming customers, and ensuring continuity of supply within our supply chains is crucial,” said Mr Allison.
“The upheaval to supply chains during the pandemic gave the sector a greater awareness of how supply chain disruptions can affect operations in Australia.
Since inception in 1999, Eureka! has developed more than 600 commercial products with its customers.
It owns six patents in Australia, 11 patents in overseas jurisdictions, 87 non-protected data packages for agricultural products and 19 Australian Pesticides and Veterinary Medicines Authority registrations.
Mr Allison said Elders would continue to support Eureka!’s highly professional and innovative team in developing products for the benefit of Australian farmers.
Purchase consideration was “subject to earn out performance” over the next two years and will be funded via existing debt facilities.
All key management personnel of Eureka! would remain with the business to continue to service Eureka!’s existing customers and further grow the business.
Elders footprint has been expanding steadily in recent years, in line with Elders’ Eight Point Plan, focusing on strategic growth in key locations across Australia.
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