Halcyon Agri Corporation Limited, of the world’s largest natural rubber supply chain managers, has completed its acquisition of the assets and entities under the Polymer Division of RCMA Group Pte Ltd for US$31.8m.
The acquisition has led to the establishment of the Halcyon Rubber and Plantations (“HRP”) business unit, headed by Robert Meyer, Executive Director and Chief Executive Officer of Halcyon Agri.
HRP, which includes the Group’s existing industrial distribution and latex division, will supply industrial grade natural rubber, latex, and synthetic rubber to consumer product manufacturers. The latex will be processed in Halcyon Agri’s factories in West Africa, namely Sud Cameroun Hevea S.A. and Hevea Cameroun S.A., leveraging its global distribution network for seamless delivery to serve the non-tyre and specialty tyre business globally.
The acquisition also includes some of the world’s oldest rubber trading names, which have been injected into Halcyon Agri’s sales and distribution arm, Centrotrade Holdings Pte Ltd (“CTH”). The combined franchises of Centrotrade, Alan L Grant Polymer, Corrie MacColl Rubber and Wurfbain Polymer will provide the global marketplace for specialty latex and rubber with unparalleled technical support, and laboratory and certification services. Including the impact of the acquisition to CTH’s yearto-date (“YTD”) Q3 2017, CTH’s revenue would have increased by over 221% to US$590m, and sales volume would have increased 170% to 288,393 metric tonnes.
The completion of the acquisition will also enable Halcyon Agri’s Chinese sales and distribution arm New Continent Enterprises (Private) Limited (“NCE”) to better position its origination and hedging capabilities and increase distribution volume.
NCE will distribute HEVEAPRO, Halcyon Agri’s proprietary brand of sustainable rubber to Chinese tyre manufacturers and provide end-to-end supply chain services for technically specified rubber products from Halcyon Agri’s factories. Including the impact of the acquisition to NCE’s YTD Q3 2017, NCE’s revenue would have increased by 25% to US$753m, and sales volume would have increased by 21% to 397,485 metric tonnes.
More than 60 experienced employees across multiple geographies from RCMA Group’s Polymer Division have joined Halcyon Agri’s workforce, bringing along their expertise and industry knowledge.