With the acquisition of Pro Farm, Marrone Bio will add nutrient and biostimulant technology and products for seed and foliar treatments
Image: Marrone Bio has agreed to acquire Pro Farm Technologies. Photo: courtesy of rawpixel from Pixabay.
Marrone Bio Innovations has signed an agreement to acquire Finland-based Pro Farm Technologies for an enterprise value of $31.8m (£26.17), including of $6.2m (£5.10m) cash and 12.7 million shares.
The transaction also includes potential payment of up to $7.5m (£6.17m) of additional shares of stock deliverable from 2021 through 2024 based on the achievement of agreed commercial milestones.
The acquisition of Pro Farm Technologies will help Marrone Bio to increase its market share and global platform in the $4.6bn (£3.7bn) seed and soil-treatment market.
Marrone Bio board chairman Bob Woods said: “This acquisition is an example of the kind of transformative investments that we seek to grow Marrone Bio from a product, crop and geographic perspective, and to do so in a way that can immediately accelerate our revenue growth and margin expansion.
“We believe acquisitions like Pro Farm will allow us to cost-effectively expand our global scale, and significantly escalate our growth trajectory.”
Pro Farm will add Marrone Bio’s portfolio with advanced nutrient and biostimulant technology and products for seed and foliar treatments.
The deal will also enable Pro Farm to leverage an expanded global distribution network for all of its products.
Pro Farm’s manufacturing process begins with lignin
The manufacturing process of Pro Farm commences with lignin, a crucial structural material found in wood and bark.
Pro Farm converts lignin, which is extracted as a byproduct from the pulp and paper industry, into a purified derivative called lignosulfonate.
Later, the lignosulfonate will be combined with patent-protected formulations, which are highly concentrated and bio-available.
The resulting plant stimulants will be used for earlier plant establishment, more potent plant emergence, and overall improved plant health.
Subject to satisfaction of customary conditions, the deal is expected to be completed in the third quarter of this year.
Marrone Bio CEO Dr Pam Marrone said: “Today’s announcement is a critical step in our strategic objective to build a platform company that leverages our scientific, manufacturing and commercial expertise through new agricultural solutions.
“We believe we have the technology, talent and financial support to achieve our goal of creating a biological ag inputs company of major scope and scale.”