Redag Crop Protection Announces The Sale of its Discovery Division to Globachem NV
Redag retains lead assets with the deal providing partial exit for Redag’s UK Investors
Redag Crop Protection Ltd, a UK agrochemical discovery company, has today announced the sale of its discovery and early development division to Globachem NV, retaining the lead assets for continued development to commercialisation.
With this new acquisition, Globachem continues its already fast-growing development. Globachem Discovery Ltd, the new name of the acquired company, will enhance and strengthen Globachem Group capabilities in Research and Development.
The partial sale will allow Redag to focus on the development of the two lead assets, a broad spectrum herbicide and a potato blight fungicide with a view to licensing them once further field trials and data packages have been created.
Bill Thompson, CEO of Redag Crop Protection, said: “We are delighted to announce this deal with Globachem. Following a period of success since we started up in 2014 in discovering active compounds, protecting the IP and securing collaboration deals, this part sale enables us to accelerate development of our two lead assets to address the global challenge of food security”. Thompson added that the industry has seen a declining number of compounds in development following a period of consolidation across large agrochemical companies, alongside an increasing number of compounds being deregistered or withdrawn for health, safety or environmental reasons. “Right across the industry there is a strategic need for new compounds to replace the older compounds,” he said, explaining it could be in the provision of greater safety or new modes of action.
The deal confirms the world class capabilities that Redag has established at Alderley Park, UK.
Koen Quaghebeur, President of Globachem said: “Globachem is committed to develop innovative crop protection products. Having been introduced to Redag Crop Protection, we identified an opportunity to bring their significant expertise in-house. This will enable Globachem to become an innovative global player in crop protection chemistry and provide Globachem with a valuable end-to-end development and supply business.
Norman Molyneux, founder of Acceleris Capital and non-executive director of Redag Crop has been involved in several funding rounds for the company since incorporation. He said:
“We are delighted that we have been able to conclude this transaction with Globachem which provides Redag with the funds to focus development of its lead assets. There is a clear product innovation requirement within the agrochemical industry and a ready base of customers seeking novel compounds to commercialise in the market. We are proud to have assisted in the growth of Redag from startup and look forward to securing further returns for the Company’s shareholders from its retained assets.
Redag was advised by Acceleris (Corporate Finance), Slater Heelis (legal) and Fairhurst (tax advice and financial and tax due diligence)
ENDS
For more information, please contact Norman Molyneux of Acceleris Capital on 01942 35 66 55 | normanmolyneux@acceleris.com or contact Bill Thompson of Redag Crop on 07763 480992 | bill.thompson@redagcrop.com
Notes for Editors
About Redag Crop
Redag Crop Protection is a chemical discovery company targeting novel pesticides and collaborates with and licenses novel compounds to leading players in the agrochemical industry fulfilling their needs for pipeline compounds.
About Globachem
Globachem is a family owned business specializing in developing, registering and distributing a wide range of plant protection products on a global basis.
For more information please visit our new website at www.globachem.com or e-mail discovery@globachem.com.
About Acceleris
Acceleris Capital Ltd is part of Seneca Partners and is a corporate finance boutique specialising in securing funding for start up and development companies across the UK. Acceleris Capital has arranged over £100 million into SME’s in UK over the last 19 years.
