Triton Advisers Ltd., which bought the Compo fertilizer brand from K+S AG three years ago, is readying to sell the business in two separate parts. The first part of the company to be sold includes golf courses, vineyards, and professional range for nurseries, which are together valued at approximately 300 million euros. The second part, which includes consumer-facing operations supplying products from potting soil to law fertilizers, will be sold later.
Triton’s decision to split the business does not come as a surprise as dividing business might maximize returns on investment that cost the company about 205 million euros every year. The company’s comeback to the market coincides with general improvements in demand in Compo’s industrial business and increased interest in agrochemical firms. For instance, FMC Corp. agreed to purchase insecticide maker Cheminova for $1.8 billion in September while Yara ASA did not succeed to merge with rival CF Industries Inc in October.
Triton confirmed that Compo has been separated into two parts but did not comment on speculations about asset sales. The industrial part of the business is becoming increasingly interesting for both private-equity companies and strategic buyers. As the sale process is still in the very early stages, there is no guarantee though that it will be successfully finalized.
