Permira confirms to acquire Japan's Arysta for US$2.2bn

British private equity firm Permira Advisers LLP announced Monday that it will buy Japan-based agrochemical company Arysta LifeScience Corp. for US$2.2 billion, marking its first acquisition in the Land of the Rising Sun.

The European private equity firm said it has signed a definitive agreement to acquire the world's tenth largest agrichemicals company Arysta from funds advised by Hong Kong-based Olympus Capital Holdings Asia and its co-investors- Goldman Sachs and Lehman Brothers.

Permira said that it would make the acquisition through the Republic of Ireland- based investment company, Industrial Equity Investments Ltd. (IEIL).

On their deal with agrochemical company, Margaret O'Connor, chairperson of IEIL said, “We are delighted to be acquiring a truly global business headquartered in Japan and look forward to supporting the management in their growth going forward.”

“Olympus Capital has provided consistent support for our growth over the last five years. We are now excited to look to the future with IEIL, who shares our vision and ambition to further accelerate our growth plans over the coming years,” said Chris Richards, CEO of Arysta LifeScience.

The purchase will be one of the largest acquisitions in Japan by a buyout fund. Before this, private equity firm MBK Partners Ltd., earlier this year, bought Japanese business software firm Yayoi Co. from Livedoor Holdings Co. Ltd. for 71 billion-yen (US$610 million).

The deal is still subject to regulatory review and approvals. Permira expects to close the deal in the first quarter of 2008.

London, United Kingdom-based Permira is Europe's biggest buyout firm that acts as adviser to the 19 Permira Funds, totaling approximately Euro 22 billion, which have been raised since 1985.

Established in 2001, Arysta is one of the world's largest privately held crop protection and life science companies. The company is formed through the combination of the life science divisions of Tomen Corp. and Sojitz Holdings Corp. owned trading company Nichimen Corp.

Arysta has a portfolio of more than 150 products with approximately 2,200 employees in 120 countries. Last year, it reported annual revenue of 124.1 billion yen or US$1.1 billion.