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Orica Ltd has outbid The Scotts Company’s proposal to purchase a market leader in the green industry.
Australia’s largest chemicals company is offering $30 million for the lawn and garden business of Yates Ltd. Orica’s proposal, amounting to $45 million in Australian currency, tops the previous offer made by U.S. Scotts of the United States. Scotts’ bid was about $26 million – translating into $41 million in Australian cash.
The Australian company’s offer is conditional on the Scotts deal not happening and Yates securing shareholder approval for the sale. Orica expects completion by the end of October.
“This acquisition would be a logical extension of Orica Consumer Products into the high-growth garden care sector of the do-it-yourself business,” the company noted in a statement to the Australian Stock Exchange.