Dec 1, 2022

Corteva to acquire biologicals company Stoller

Corteva Inc. has signed a definitive agreement to acquire Houston-based Stoller Group, an independent biologicals company.

With operations and sales in more than 60 countries and forecasted revenues of more than $400 million in 2022, Stoller brings immediate scale and profitability, with EBITDA (earnings before interest, taxes, depreciation and amortization margins that will be accretive to Corteva.

The acquisition reinforces Corteva’s commitment to providing farmers with biological tools that complement evolving farming practices and help them meet changing market expectations, according to a Corteva news release. Stoller’s superior reputation for farmer relationships and demand creation centers around a commercial model that’s built upon sharing knowledge with the channel and farmers.  Stoller has been successful by demonstrating technical excellence and delivering benefits and value of integrated solutions in the field, according to the release.

“Biologicals provide farmers with sustainably advantaged tools that complement crop protection technologies, and collectively can work to address global challenges around food security and climate change,” Corteva CEO Chuck Magro said in the release. “Stoller represents a leader in the biologicals industry given its commercial presence and market expansion potential, while also delivering attractive growth and operating margins.

“In combination with Corteva’s leading innovation organization, Stoller provides a platform for expanding and accelerating Corteva’s biologicals business to become one of the largest players in the rapidly expanding biologicals market.”

The biologicals market is expected to grow high-single digits annually through 2035, representing about 25% of the overall crop protection market by 2035.  In just three years, Corteva has developed a world-class biologicals business by implementing smart, nimble strategies built around external and internal innovation, R&D collaborations, licensing and distribution agreements and acquisitions, according to the Corteva statement.

“In Stoller’s 50-plus year history, we have successfully helped growers around the world increase their productivity and improve their sustainability,” Guillermo de la Borda, Stoller CEO said in the release. “We are proud to join forces with Corteva as we share a vision of helping farmers succeed in growing the nutritious food the world relies on.

“This announcement is a true testament to the incredible success and dedication of our teams across the globe who have helped us become one of the most trusted biostimulant and plant health companies in the world,” de la Borda said in the release. “Our innovative solutions and deep expertise will continue to make an impact for years to come.”

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.

Corteva will host a half-hour live webcast at 11 a.m. Eastern Dec. 5 EST to discuss additional details regarding the transaction and the company’s overall biologicals strategy.