Press releases

CIECH finalised the take-over of 100% of shares in a Spanish company, Proplan

CIECH S.A. acquired 100 percent of shares in Proplan – a Spanish supplier of crop protection products operating on three continents. Thanks to this, CIECH has gained access to new sales markets in southern Europe, North Africa, South America and Australia and has acquired a portfolio of active substances and 120 product registrations. The value of the transaction was EUR 44.6 million. The acquisition of the Spanish supplier is an opportunity for a rapid development of the plant protection product business and diversification of the Group's operations. In 2017, Proplan generated EUR 16 million in revenue while maintaining high profitability.

In comparison to the sales commitment agreement of the end of May 2017, there is a change in the number of the shares of the Spanish company which have been acquired – from 75% to 100%. Thus, the value of the transaction increased to EUR 44.6 million. Proplan will be included in the structure of CIECH Group and its results will be consolidated as of Q3 2018.

- As announced earlier, we have closed the transaction of acquisition of the Spanish company Proplan and we are proceeding with the operational integration of the company with CIECH. This is a very important moment in the recent history of CIECH, whose acquisitions until now, outside Poland, included only companies operating in the soda business. The acquisition of Proplan allows for rapid foreign expansion thanks to access to many promising markets and a large portfolio of product registrations. Thus, we have entered a new stage of the AGRO business development within the Group, combining the intellectual capital of the acquired company and the presence on new markets with the CIECH’s scale of operations, its production capacity, as well as research and development facilities – says Maciej Tybura, President of the Management Board of CIECH S.A.

Proplan is a supplier of generic crop protection products. It operates in the Asset-Light business model. It uses outsourcing in the area of production, raw material delivery and logistics. The company manages the registration portfolio and fully coordinates the related processes. In total, the company has 126 registrations. At the same time, it is currently making attempts to obtain many new registrations on 5 continents. In 2018 alone, Proplan will expand its portfolio with 18 new products.

Spain is the main operational market for Proplan but the company also supplies its crop protection products, among others, to France, Italy, Australia and African countries. Moreover, it plans to expand into South American markets.

The takeover of Proplan provides CIECH Group with access to registered active substances and end products. It entails considerable savings for CIECH – product registration on new markets is time-consuming and takes between 3 and 5 years. In addition, preparing documentation and carrying out research involves high costs.

According to available analyses, in the next 5-7 years, the market for crop protection products will grow steadily, at a rate of approx. 2 percent per annum, reaching in 2025 the value of approx. USD 65 billion. The market of generic manufacturers – i.e. such as Proplan and CIECH – is expected to grow faster (at a rate of approx. 4% per annum).

Mirosław Kuk, CIECH Group Spokesman, tel. +48 723 66 86 86.

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