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

2. Drivers of Agriculture
Demand
Technology
Globalization
buyer will recognize profitable opportunities to take advantage of cheap labor and raw materials, unmet consumer demand, deregulation, trade liberalization, and country integration of capital and product markets into global markets

3. Drivers of Agriculture - Demand
World population is expected to reach more than 9 billion by 2050.
Demand for food will double.
buyer will recognize profitable opportunities to take advantage of cheap labor and raw materials, unmet consumer demand, deregulation, trade liberalization, and country integration of capital and product markets into global markets

4. Drivers of Agriculture - Demand
More people eating better food
Consumers becoming more demanding
Health
Food safety
buyer will recognize profitable opportunities to take advantage of cheap labor and raw materials, unmet consumer demand, deregulation, trade liberalization, and country integration of capital and product markets into global markets

5. 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.
buyer will recognize profitable opportunities to take advantage of cheap labor and raw materials, unmet consumer demand, deregulation, trade liberalization, and country integration of capital and product markets into global markets

6. Drivers of Agriculture - Demand
buyer will recognize profitable opportunities to take advantage of cheap labor and raw materials, unmet consumer demand, deregulation, trade liberalization, and country integration of capital and product markets into global markets

7. Drivers of Agriculture -Technology
“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
Source: USDA-NASS Crop Production. United States Dept. of Agr - Nat'l Ag. Statistics Service, Washington, D.C.

8. Drivers of Agriculture -Technology
Produce more for less
Innovation driven by environmental limitations such as:
Land erosion
Limited useable water

9. Drivers of Agriculture -Technology
The Productivity of America’s Farmers:
Number of People Fed Annually by One American Farmer

10. Drivers of Agriculture -Technology
U.S. Adaption of GM Field Crops:

11. Drivers of Agriculture -Technology
Integrated Farming Systems
Source: Monsanto Ag Science 2012

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

13. Drivers of Agriculture -Technology
Agriculture Food Chain
Technology
Inputs
Production
Processing
Distribution
Retail
Animal Genetics
Genomics
Plant & Animal Biotechnology
Irrigation Technology
Precision Agriculture
Seed & Plant Genetics
Information Systems
Identification & Traceability
Food Safety
Animal Health
Animal Nutrition & Feed
Crop Protection Chemicals
Farm Equipment Manufacturing
Process Equipment Manufacturing
Farm Finance
Fertilizer & Plant Nutrition
Grain Handling Equipment
Risk Management
Aquaculture
Beef
Dairy
Grain
Greenhouse & Nursery
Horticulture
Permanent Crops
Pork
Poultry & Egg
Turf & Forage
Vegetable, Fruits & Nuts
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
OTC Animal Health Products
Consumer Garden Specialty
Consumer Pet Specialty
Pet Food 13

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

15. Drivers of Agriculture - Globalization
Global Food & Feed Trade Projected to Surpass $1.6 trillion by 2022
$35 billion in 1963 to nearly $1.5 trillion in 2021
Global food & feed imports projected to increase another $303 billion over next decade
“Food & Feed” includes all agricultural trade minus tobacco, hides & skins, live animals, cotton, rubber & allied gums, cut flowers, and planting seeds
Source: FAOSTAT; USDA/FAS Projections

16. Drivers of Agriculture - Globalization
Food & Feed Exports Have More Than Tripled from Each Region over the Past Two Decades
$35 billion in 1963 to nearly $1.5 trillion in 2021
Global food & feed imports projected to increase another $303 billion over next decade
“Food & Feed” includes all agricultural trade minus tobacco, hides & skins, live animals, cotton, rubber & allied gums, cut flowers, and planting seeds
Source: COMTRADE

17. Drivers of Agriculture - Globalization
Agribusinesses are consolidating and becoming more global.
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.

18. Global Cross-Border M&A (all industry)
buyer will recognize profitable opportunities to take advantage of cheap labor and raw materials, unmet consumer demand, deregulation, trade liberalization, and country integration of capital and product markets into global markets
Source: Press Release mergermarket M&A Round up for 2012

19. Select Cross-Border M&A Deals (Israeli Ag)
Select Cross-Border M&A Deals in Israeli Agribusiness
Announced Date
Target Co.
Dominant
Country
Sector
Buyer Co.
Deal Value US$ (mm)
2/3/2013
Rosetta Green Ltd., Substantially All Assets
Israel
Biotech
Monsanto
United States
Fertilizers and Agricultural Chemicals 37
5/14/2012
NaanDan Jain Irrigation C.S. Ltd.
Construction and Farm Machinery
Jain Irrigation Systems Limited
India 34
6/12/2011
Netafim Ltd.
Permira Advisers Ltd.
United Kingdom
Private Investment Firm
530
12/07/2010
The Scotts Company, LLC, Global Professional Business Unit
Distributors
Israel Chemicals Ltd.
255
10/11/2010
Makhteshim Agan Industries Ltd.
China National Chemical Corporation
China
Diversified Chemicals
2797
7/9/2007
Zeraim Gedera Ltd.
Agricultural Products
Syngenta AG
Switzerland 95
11/13/2006
Hazera Genetics Ltd..
Vilmorin & Cie
France
n/a

20. Select Cross-Border M&A Deals (Agribusiness)
Select Cross-Border M&A Deals in Agribusiness ( )
Announced Date
Target Co.
Dominant
Country
Sector
Buyer Co.
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
Warrnambool Cheese And Butter Factory Company Holdings Limited
Australia
Saputo, Inc.
Canada
445
10/4/2013
Russian Quartz LLC
Russia
Precious Metals and Minerals
Sumitomo Corporation
Japan
Trading Companies
n/a
10/01/2013
Shamrock Seed Company, Inc.
Vilmorin & Cie
France
9/9/2013
Hubei Sanonda Co. Ltd.
China
Fertilizers and Agricultural Chemicals
Makhteshim-Agan Industries Ltd.
Israel
283
8/10/2013
Seed Co
Zimbabwe
8/5/2013
Joe White Maltings Pty. Ltd.
Cargill
302

21. Select Cross-Border M&A Deals (Agribusiness)
Select Cross-Border M&A Deals in Agribusiness ( )
Announced Date
Target Co.
Dominant
Country
Sector
Buyer Co.
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.
152
7/31/2013
Boyuan Group, Bodashidi Plant
China
Fertilizers and Agricultural Chemicals
LG Corp.
South Korea
Industrial Conglomerates 92
7/24/2013
EPAX A.S.
Norway
Pharmaceuticals
FMC Corp.
United States
Diversified Chemicals
345
7/11/2013
Siamakme Aquatic Feeds Co., Ltd.
Thailand
Cargill
Agricultural Products
n/a
6/24/2013
Copeinca Asa
China Fishery Group Limited
903
5/29/2013
Smithfield Foods, Inc.
Shuanghui International Holdings Limited
7,276

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

23. Select Cross-Border M&A Deals (Agribusiness)
Select Cross-Border M&A Deals in Agribusiness ( )
Announced Date
Target Co.
Dominant
Country
Sector
Buyer Co.
Deal Value US$ (mm)
1/8/2013
Link Seed (Pty) Limited
South Africa
Agricultural Products
Vilmorin & Cie
France
n/a
12/7/2012
Bunge Limited, Fertilizer Business in Brazil
Brazil
Fertilizers and Agricultural Chemicals
Yara International ASA
Norway
750
11/14/2012
Sunfield Seeds Inc.
United States
Syngenta AG
Switzerland
10/18/2012
GrainCorp. Ltd.
Australia
Archer Daniels Midland Company
3,420
8/2/2012
Canadian Fertilizers Limited
Canada
CF Industries Holdings, Inc.
911
3/20/2012
Glencore International plc, Agri-Products Business of Viterra, Inc.
Agri-product Retail
Agrium Inc.
1,788
1/6/2012
Santal Equipamentos S/A Comércio e Indústria
Construction and Farm Machinery
AGCO Corporation 26

24. 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

25. AgriCapital Corporation
AgriCapital Contact Information
R.B. Halaby
Chairman
AgriCapital Corporation
1410 Broadway, Suite 1802
New York, NY 10018
Telephone: (212)