(Rubber News Report)
Singapore – Halcyon Agri Corp. Ltd., the natural rubber processing and merchandising company, has signed a Memorandum of Understanding to acquire NR distributor New Continent Enterprises (Private) Ltd. for approximately $30 million (€22.8m).
The estimated sale price is based on NCE’s current estimated net book value as of 31 July, Halcyon Agri said in a press release. Payments will be in four quarterly installments of either cash or, at the vendor’s discretion, in Halcyon Agri shares.
“New Continent is a long-established and globally renowned rubber distributor and dealer with an extensive customer base and a powerful distribution network,” said Robert Meyer, Halcyon Agri executive chairman and CEO.
NCE participates throughout the entire NR value chain, from sourcing new materials to marketing, transporting, importing and exporting all leading grades of natural rubber, according to the release. In 2013, NCE sold approximately 250,000 tonnes of rubber to more than 150 customers worldwide.
Halcyon Agri is one of the largest producers of Standard Indonesian Rubber, with six Indonesian subsidiaries and 12 total crumb rubber factories producing approximately 568,000 tonnes of rubber annually. The company’s risk management and merchandising operations are in Singapore.