Rainbow acquires S.A. to accelerate market expansion in the EU

Recently, Rainbow announced that it will acquire 100% of the equity in the S.A. for cash. Upon completion of the transaction, Sarabia will become a wholly owned subsidiary of Rainbow.

Established in 1985 and headquartered in Fraga, Huesca, Spain, Sarabia is a Spanish family-owned company with a long history, focusing on the production and brand marketing of crop protection. Its factory is located in in Lerida, Spain, and has a good brand reputation and marketing network in Spain and surrounding markets.

EU is a market with high threshold and market value in the global crop protection market, which means long time, large investment and complex registration rules if you want to enter the market. It is an important market to be developed by Rainbow which has been included in the planning. Rainbow has invested in technical equivalent recognition in the EU since 2016, and has obtained equivalent recognization for about 80 active components in the EU, and is continuing to complete the equivalent recognition for more active components in this market. At present, Rainbow’s supply platform of active component for agrochemicals in the EU market has been completed and continues to enrich and improve.

After this acquisition, Rainbow will further integrate Sarabia’s product system and marketing network based on its strategic planning for the EU market, give full play to the resource advantages of Rainbow, complement and coordinate the development with Sarabia, and greatly accelerate the process of Rainbow’s expansion into the EU market.

The wholly-owned acquisition of 100% equity of Sarabia by Rainbow is to further improve the global marketing network and further strengthen the global layout, which is in line with the strategic planning of Rainbow and interests of all shareholders.

In this transaction, Deloitte was hired as financial advisor, and Jingtian&Gongcheng and ECIJA were hired as the legal counsel for this transaction.