Deal Dies Between Makhteshim, Albaugh
A proposed $1 billion agreement between Makhteshim Agan Industries and Albaugh has soured.
September 9, 2010
The only U.S. glyphosate plant that doesn’t belong to Monsanto will remain idle as a result of Makhteshim Agan Industries pulling out of its deal to acquire Iowa-based Albaugh. The companies have differing assertions about why the deal collapsed.
Through a press release, the world’s largest generic pesticide company reported it discovered “a material deviation” from the data that prompted MAI to sign a letter of intent to buy Albaugh.
“We have taken the right decision given the material gaps which emerged during the due diligence process," MAI CEO Erez Vigodman said in the press release. "We will continue to take all the necessary actions to grow MAI profitably over the coming years, while improving our cost structure and taking advantage of opportunities in our markets”.
Following this assertion, Albaugh countered through a press release by saying that MAI was trying to change the deal originally outlined in the letter of intent.
“Makhteshim Agan attempted to force major changes to the transaction at the 11th hour,” Albaugh Chairman Dennis Albaugh countered in a statement. “While we are disappointed by Makhteshim's decision to demand these changes, we are moving forward with our business. The fundamentals of our worldwide businesses are very strong and I believe we are poised for strong growth in 2011 and beyond."