Corteva acquires Storah for US$1.2 billion

Corteva announced that it has signed a definitive agreement with Stella. According to the agreement, Corteva will acquire Stole for US$1.2 billion in cash.

Stole is one of the largest independent biologics companies in the biological field, with business footprints and marketing networks in more than 60 countries around the world, and its revenue is expected to exceed US$400 million in 2022. The acquisition of Stole is Corteva's second acquisition plan in the field of biological products after it recently announced the signing of the final agreement to acquire Xingbo. Corteva will integrate the commercial and technological advantages of Stola and Xingbo as part of its strategic plan for biologics.

It is reported that the purchase price of Stole is US$1.2 billion in cash, which is based on the estimated net profit of Stole in 2022. Cash will be paid upon closing, and the final transaction is expected to close in the first half of 2023, subject to regulatory approvals and satisfaction of customary closing conditions. Corteva expects Storah's performance to be accretive to its operating profit and earnings per share in 2023.

According to Corteva, the acquisition reinforces Corteva's commitment to providing biological solutions to farmers, enriching growing agricultural practices, and helping farmers meet changing market expectations. According to Corteva, Storah has a good reputation and its business model is based on channels for sharing knowledge with farmers. Strudel achieves its success by applying technical excellence and delivering the benefits and value of integrated solutions in this field.

According to Chuck Magro, CEO of Corteva, biological agents provide growers with a favorable tool for sustainable development, which can enhance crop protection technology and jointly address global challenges around food security and climate change. As a leader in the biologics industry, Storah possesses a high commercial status and strong market expansion potential, as well as attractive operating efficiency and profit growth. By combining with Corteva's leading innovation structure, Storah will provide a good platform for the expansion and acceleration of Corteva's biologics business, helping it become one of the largest players in the biologics market.

Corteva expects that from now until 2035, the biologics market is expected to grow at an annual rate of higher than single digits, with a market share of about 25% of the entire crop protection market. Within 3 years, Corteva has gradually developed into a world leader in the field of biological products by implementing intelligent and flexible development strategies, strengthening external and internal innovation, R&D cooperation, licensing and distribution agreements, acquisitions, etc.