Corteva Signed Agreement to Acquire Stoller Group on November 30, 2022

On November 20, 2022, Corteva, Inc. (NYSE: CTVA) and Stoller Group, Inc. ("Stoller") announced that 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.

The acquisition of Stoller reinforces Corteva's commitment to providing farmers with Biological tools that complement evolving farming practices and help them meet changing market expectations.

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.

Chuck Magro, Chief Executive Officer Corteva:
 

"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. 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 approximately 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.

Guillermo de la Borda, Chief Executive Officer of Stoller:
 

"In Stoller’s 50+ year history, we have successfully helped growers around the world increase their productivity and improve their sustainability. 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. Our innovative solutions and deep expertise will continue to make an impact for years to come."

Stoller was the second Biologicals acquisition for Corteva in 2022, as the company had announced the signed a definitive agreement to acquire Symborg, an expert in microbiological technologies based in Murcia, Spain. Corteva brought together the complementary commercial and technical strengths of Stoller and Symborg as part of its Biologicals strategy. The Stoller purchased price of USD 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 was paid at closing, which was completed in the first half of 2023 following regulatory approvals and satisfaction of customary closing conditions. The Company expects that Stoller results were accretive to both Operating EBITDA and Operating EPS for 2023. make the in the past in 2022.