Purchase CCAB control InVivo French

The French group InVivo, one of the largest of agricultural cooperatives of France, put the Brazil once in sight of its internationalisation process. The French company today announces the purchase of control of the CCAB Agro, Brazilian Agricultural Cooperative, Consortium of agricultural pesticides. With this, his debut in this segment in the country.
The CCAB Agro is a company of generic pesticides, created in 2006 from the Union of several cooperatives. Currently, there are 18 cooperatives and producer groups gathered, that meet farmers in eight Brazilian States 55000. In the crop year ended June 2015 (latest data available), the company had net revenue of 331 million R$.
The companies failed to disclose details of the transaction. The newspaper found that the acquisition took place through a contribution of resources in CCAB Agro, whereby the InVivo became majority shareholder. The Group of brazilian cooperatives was diluted, but remains relevant as a shareholder of the company. According to market sources, the French company placed approximately 220 million R$ in the business.
In the 2015 fiscal year/2016, the French company''s net revenue totaled € 6.4 billion. In Brazil, is present in animal nutrition and health, with Neovia. After the acquisition of CCAB Agro, extends the range of activities and, from this transaction, other opportunities of synergy will be evaluated. Jones Yasuda, President of the CCBA Agro, explained that the transaction is critical to give scale to the company, in particular on the consolidation of large groups producers of raw materials to the defensive, such as Basf, Bayer, DuPont, Syngenta, enters other.
Currently, the CCAB Agro has authorization to market 14 formulated products (ready to use by the farmer). The company has over 30 formulated products being evaluated for release. The expectation is that Yasuda, within 18 to 24 months, the portfolio for farmers has more than doubled in size. The capital contribution of InVivo, according to him, is important as it gives to the company meet this approval cycle, especially in a segment that lives to give credit to the customer. Between have the conditions to offer the product and obtain the certification required by the Government, the cycle is long, and may take up to two years.
In addition, 60% to 70% of the cost of the products depends on imported inputs. In June 2015, the CCAB Agro had R$ 290,400,000 of loans and financing commitments and just over 9 million R$ in box. The Executive hopes that within three years, CCAB Agro has tripled the recipe, what it means to become a billionaire business. The search for synergies should place precision agriculture markets and in the sights of the partnership.
In addition to the scale that the transaction with the French group brings in volume, there are efficiency gains expected. According to Yasuda, Agro and InVivo CCAB joints will evaluate the opportunity to set up an infrastructure to production in China, with a team dedicated to monitoring the production process and to look for the best conditions.
In a statement, Thierry Blandinières, Chairman of InVivo, stated that the acquisition is important to performance in the brazilian economy. According to the Executive, InVivo''s plan to 2025 anticipates that growth will come mainly from a strong process of internationalization. In September last year, InVivo, Neovia, acquired a unit of animal nutrition in Rondônia.