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Go4Europe 2013 “Cross Border M&A in Agriculture” RB Halaby Chairman AgriCapital Corporation October 28th, 2013 1.

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Presentation on theme: "Go4Europe 2013 “Cross Border M&A in Agriculture” RB Halaby Chairman AgriCapital Corporation October 28th, 2013 1."— Presentation transcript:

1 Go4Europe 2013 “Cross Border M&A in Agriculture” RB Halaby Chairman AgriCapital Corporation October 28th,

2 Cross-border M&A in Agriculture Drivers of Agriculture  Demand  Technology  Globalization 2

3 Cross-border M&A in Agriculture Drivers of Agriculture - Demand  World population is expected to reach more than 9 billion by  Demand for food will double. 3

4 Cross-border M&A in Agriculture Drivers of Agriculture - Demand  More people eating better food  Consumers becoming more demanding Health Food safety 4

5 Cross-border M&A in Agriculture Drivers of Agriculture - Demand  By 2050 global per capita income is expected to increase to nearly three times the 2005 level. Creates more and more higher-income consumers. 5

6 Cross-border M&A in Agriculture Drivers of Agriculture - Demand 6

7 Cross-border M&A in Agriculture Drivers of Agriculture -Technology Source: USDA-NASS Crop Production. United States Dept. of Agr - Nat'l Ag. Statistics Service, Washington, D.C. “To meet the increasing demand from a growing population, we will need to produce more food in the next 40 years than has been produced in the previous ten thousand years. – Jason Clay, Senior VP WWF 7

8 Cross-border M&A in Agriculture Drivers of Agriculture -Technology  Produce more for less  Innovation driven by environmental limitations such as: Land erosion Limited useable water 8

9 Cross-border M&A in Agriculture Drivers of Agriculture -Technology The Productivity of America’s Farmers: Number of People Fed Annually by One American Farmer 9

10 Cross-border M&A in Agriculture Drivers of Agriculture -Technology U.S. Adaption of GM Field Crops:

11 Cross-border M&A in Agriculture Drivers of Agriculture -Technology Integrated Farming Systems Source: Monsanto Ag Science

12 Cross-border M&A in Agriculture Drivers of Agriculture -Technology 12 Galileo Wheel Ltd. A Revolutionary Approach to Tire Design  Lesser soil compaction  Better traction  Higher mileage Diagonal Ply 1898 Galileo 2012 Radial 1949

13 Cross-border M&A in Agriculture Drivers of Agriculture -Technology Technology InputsProductionProcessing Distribution Animal Genetics Genomics Plant & Animal Biotechnology Irrigation Technology Precision Agriculture Seed & Plant Genetics Information Systems Identification & Traceability Food Safety Aquaculture Beef Dairy Grain Greenhouse & Nursery Horticulture Permanent Crops Pork Poultry & Egg Turf & Forage Vegetable, Fruits & Nuts Animal Health Animal Nutrition & Feed Crop Protection Chemicals Farm Equipment Manufacturing Process Equipment Manufacturing Farm Finance Fertilizer & Plant Nutrition Grain Handling Equipment Risk Management Biofuel Grain Milling Meat Packing Oilseed Crushing Produce & Packing Rendering & Waste Water Recycling Ag Retailers Cold Chain & Food Logistics Commodity Trading Equipment Distributors Grain Logistics Retail OTC Animal Health Products Consumer Garden Specialty Consumer Pet Specialty Pet Food Agriculture Food Chain 13

14 Cross-border M&A in Agriculture Drivers of Agriculture - Globalization  Agriculture is agnostic – knows no border, nationality, religion, age, ethnicity, gender and color. Source: FAO, 2007 Global Trade in Grain 14

15 Cross-border M&A in Agriculture Drivers of Agriculture - Globalization  Global Food & Feed Trade Projected to Surpass $1.6 trillion by 2022 Source: FAOSTAT; USDA/FAS Projections 15

16 Cross-border M&A in Agriculture Drivers of Agriculture - Globalization  Food & Feed Exports Have More Than Tripled from Each Region over the Past Two Decades Source: COMTRADE 16

17 Cross-border M&A in Agriculture Drivers of Agriculture - Globalization  Globalization of agribusiness is escalating Companies are seeking economies of scale to maximize efficiency and take as much cost out of the system as possible. –Agriculture is unforgiving of inefficiencies. Governments seeking “guaranteed and stable” food supplies for their people. –e.g. Asian companies, in cooperation with government, developing relationships with US companies to source US grain. Increased sourcing and competition from international agribusinesses. Agribusinesses are consolidating and becoming more global. 17

18 Cross-border M&A in Agriculture Global Cross-Border M&A (all industry) Source: Press Release mergermarket M&A Round up for

19 Cross-border M&A in Agriculture Announce d Date Target Co. Dominant Country Target Co. Sector Buyer Co. Dominant Country Buyer Co. Sector Deal Value US$ (mm) 2/3/2013 Rosetta Green Ltd., Substantially All Assets IsraelBiotechMonsantoUnited States Fertilizers and Agricultural Chemicals 37 5/14/2012 NaanDan Jain Irrigation C.S. Ltd. Israel Construction and Farm Machinery Jain Irrigation Systems Limited India Construction and Farm Machinery 34 6/12/2011Netafim Ltd.Israel Construction and Farm Machinery Permira Advisers Ltd. United Kingdom Private Investment Firm /07/2010 The Scotts Company, LLC, Global Professional Business Unit United StatesDistributorsIsrael Chemicals Ltd.Israel Fertilizers and Agricultural Chemicals /11/2010 Makhteshim Agan Industries Ltd. Israel Fertilizers and Agricultural Chemicals China National Chemical Corporation China Diversified Chemicals /9/2007 Zeraim Gedera Ltd. Israel Agricultural Products Syngenta AGSwitzerland Agricultural Products 95 11/13/2006 Hazera Genetics Ltd.. Israel Agricultural Products Vilmorin & CieFrance Agricultural Products n/a Select Cross-Border M&A Deals (Israeli Ag) Select Cross-Border M&A Deals in Israeli Agribusiness 19

20 Cross-border M&A in Agriculture Announce d Date Target Co. Dominant Country Target Co. Sector Buyer Co. Dominant Country Buyer Co. Sector Deal Value US$ (mm) 10/7/2013 VION Ingredients Nederland (Holding) B.V. Netherlands Packaged Foods and Meats Darling International Inc. United States Agricultural Products 2,173 10/7/2013 Warrnambool Cheese And Butter Factory Company Holdings Limited Australia Packaged Foods and Meats Saputo, Inc.Canada Packaged Foods and Meats /4/2013 Russian Quartz LLC Russia Precious Metals and Minerals Sumitomo CorporationJapan Trading Companies n/a 10/01/2013 Shamrock Seed Company, Inc. United States Agricultural Products Vilmorin & CieFrance Agricultural Products n/a 9/9/2013 Hubei Sanonda Co. Ltd. China Fertilizers and Agricultural Chemicals Makhteshim-Agan Industries Ltd. Israel Fertilizers and Agricultural Chemicals 283 8/10/2013Seed CoZimbabwe Agricultural Products Vilmorin & CieFrance Agricultural Products n/a 8/5/2013 Joe White Maltings Pty. Ltd. Australia Agricultural Products CargillUnited States Agricultural Products 302 Select Cross-Border M&A Deals (Agribusiness) Select Cross-Border M&A Deals in Agribusiness ( ) 20

21 Cross-border M&A in Agriculture Announce d Date Target Co. Dominant Country Target Co. Sector Buyer Co. Dominant Country Buyer Co. Sector Deal Value US$ (mm) 8/1/2013 Tyrrells Potato Crisps Ltd. United Kingdom Packaged Foods and Meats Investcorp Bank B.S.C. Bahrain Investment Holding Co /31/2013 Boyuan Group, Bodashidi Plant China Fertilizers and Agricultural Chemicals LG Corp.South Korea Industrial Conglomerates 92 7/24/2013EPAX A.S.Norway Pharmaceutic als FMC Corp.United States Diversified Chemicals 345 7/11/2013 Siamakme Aquatic Feeds Co., Ltd. Thailand Packaged Foods and Meats CargillUnited States Agricultural Products n/a 6/24/2013Copeinca AsaNorway Packaged Foods and Meats China Fishery Group Limited China Packaged Foods and Meats 903 5/29/2013 Smithfield Foods, Inc. United States Packaged Foods and Meats Shuanghui International Holdings Limited China Packaged Foods and Meats 7,276 Select Cross-Border M&A Deals (Agribusiness) Select Cross-Border M&A Deals in Agribusiness ( ) 21

22 Cross-border M&A in Agriculture Announce d Date Target Co. Dominant Country Target Co. Sector Buyer Co. Dominant Country Buyer Co. Sector Deal Value US$ (mm) 4/15/2013 Dieckmann GmbH & Co. KG, Oilseed Rape And Rye Seed Business Areas Germany Agricultural Products MonsantoUnited States Fertilizers and Agricultural Chemicals n/a 2/5/2013 Locker Group Pty. Ltd. Australia Diversified Metals and Mining Valmont Industries, Inc. United States Industrial Machinery 64 2/4/2013 Atlântica Sementes Ltda. Brazil Agricultural Products Nufarm LimitedAustralia Fertilizers and Agricultural Chemicals 13 2/3/2013 Rosetta Green Ltd., Substantially All Assets IsraelBiotechMonsantoUnited States Fertilizers and Agricultural Chemicals 37 1/23/2013 Arabian Agricultural Services Co. Ltd., Existing Corn Milling Facility in Al Kharj Saudi Arabia Agricultural Products CargillUnited States Agricultural Products n/a Select Cross-Border M&A Deals (Agribusiness) Select Cross-Border M&A Deals in Agribusiness ( ) 22

23 Cross-border M&A in Agriculture Announce d Date Target Co. Dominant Country Target Co. Sector Buyer Co. Dominant Country Buyer Co. Sector Deal Value US$ (mm) 1/8/2013 Link Seed (Pty) Limited South Africa Agricultural Products Vilmorin & CieFrance Agricultural Products n/a 12/7/2012 Bunge Limited, Fertilizer Business in Brazil Brazil Fertilizers and Agricultural Chemicals Yara International ASA Norway Fertilizers and Agricultural Chemicals /14/2012 Sunfield Seeds Inc. United States Agricultural Products Syngenta AGSwitzerland Fertilizers and Agricultural Chemicals n/a 10/18/2012GrainCorp. Ltd.Australia Agricultural Products Archer Daniels Midland Company United States Agricultural Products 3,420 8/2/2012 Canadian Fertilizers Limited Canada Fertilizers and Agricultural Chemicals CF Industries Holdings, Inc. United States Fertilizers and Agricultural Chemicals 911 3/20/2012 Glencore International plc, Agri-Products Business of Viterra, Inc. Canada Agri-product Retail Agrium Inc.United States Fertilizers and Agricultural Chemicals 1,788 1/6/2012 Santal Equipamentos S/A Comércio e Indústria Brazil Construction and Farm Machinery AGCO CorporationUnited States Construction and Farm Machinery 26 Select Cross-Border M&A Deals (Agribusiness) Select Cross-Border M&A Deals in Agribusiness ( ) 23

24 Cross-border M&A in Agriculture Select Cross-Border M&A assignments Select AgriCapital cross-border advisory assignments. Seeley, California Dessert Seed divested its onion breeding program to Enkhuizen, The Netherlands We advised Dessert Seed 24

25 Cross-border M&A in Agriculture AgriCapital Contact Information R.B. Halaby Chairman AgriCapital Corporation 1410 Broadway, Suite 1802 New York, NY Telephone: (212)


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