Redag retains lead assets with the deal providing partial exit for Redag’s UK Investors
Redag Crop Protection, a UK agrochemical discovery company, has today announced the sale of its discovery division to Globachem NV, retaining the lead assets for continued development to commercialisation.
Globachem’s acquisition of the Redag Crop discovery operation provides a way to address declining innovation in the agrochemical sector through the use of world-class chemistry, developing a range of highly effective crop protection products. Redag’s unique approach reduces development times, redundancy in biology testing and the cost of the discovery-to-market cycle. The partial sale will allow Redag to adopt a lean business model in order to fund the field trials and development of the two lead assets to commercialisation.
Bill Thompson, CEO of Redag Crop Protection, said: “We are delighted to announce this deal with our long-term partners at Globachem. Following a period of success 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of consolidation across large agrochemical companies, alongside an increasing number of compounds being deregistered or withdrawn for health, safety or environmental reasons.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.
Koen Quaghebeur, President of Globachem said: “Globachem is committed to bringing value for money for distributors and thus is very aware of the need to develop innovative agrochemical protection products. Having worked closely with Redag Crop Protection for a number of years, we identified an opportunity to bring their significant expertise in-house. This will enable Globachem to become a world-leader 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 multiple several funding rounds for the company since incorporation. He said:
“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. Following a successful period for Redag Crop, Acceleris are delighted to have advised on this deal to provide an early return to Redag investors with an opportunity for a further return due to the company retaining its lead assets for further development. Overall, the social impact of this company cannot be ignored. It is possible for agrochemicals to deliver up to 100% control reliably in a wide range of cultural and environmental conditions, however, to be truly effective, rapid innovation and cost savings are essential to combat the 30—40% reduction in yield caused by weed competition, diseases and insects. We are proud to have assisted in the growth of Redag from startup and will continue to advise in its next phase of maturity.”
For more information, please contact Norman Molyneux of Acceleris Capital on 01942 295 988 | email@example.com contact Bill Thompson of Redag Crop on 07763 480992 | firstname.lastname@example.org
Notes for Editors
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.
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 17 years. www.acceleris.com