Corteva has signed a definitive agreement to acquire Houston-based Stoller, one of the largest independent biologicals companies in the industry.
With operations and sales in more than 60 countries and 2022 forecasted revenues of more than USD$400 million, Stoller brings immediate scale and profitability, with EBITDA margins that will be accretive to Corteva.
A joint news release by Corteva and Stoller stated the biologicals market is expected to grow high-single digits annually through 2035 representing approximately 25 percent of the overall crop protection market by 2035.
Stoller is the second biologicals acquisition for Corteva this year, as the company recently announced it signed a definitive agreement to acquire Symborg, an expert in microbiological technologies based in Murcia, Spain. Corteva will bring together the complementary commercial and technical strengths of Stoller and Symborg as part of its biologicals strategy.
The Stoller purchase price of $1.2 billion in cash represents an enterprise value multiple of approximately 12x based on Stoller's expected EBITDA for 2022 on a stand-alone basis. The purchase price will be paid at closing, which is anticipated to be completed in the first half of 2023 following regulatory approvals and satisfaction of customary closing conditions. The Company expects that Stoller results will be accretive to both Operating EBITDA and Operating EPS for 2023.
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