Sumitomo Chemical's Full Acquisition of Two Crop Protection Companies ーStepping Up Efforts to Further Expand its European Crop Protection Business, Exploring Business Reorganization and M&A Opportunities

Jan. 30, 2025

Sumitomo Chemical has acquired all shares of Philagro Holding, S.A. (“Philagro”), its France-based consolidated subsidiary engaged in sales of crop protection products. In addition, Sumitomo Chemical is to acquire all shares of another of its consolidated subsidiary, the Spanish crop protection sales company Kenogard, S.A. (“Kenogard”). The Company has reached a basic agreement with the other shareholders of Kenogard on the acquisition. The contract is expected to be concluded within the fiscal year 2024. Going forward, Sumitomo Chemical will step up efforts to further expand its crop protection business in Europe by more closely integrating operations of these sales companies as part of the Sumitomo Chemical Group while also exploring business reorganization and M&A opportunities in the region.

Both Philagro and Kenogard are sales companies that handle agricultural materials, primarily crop protection products, with Philagro focusing on France and Kenogard focusing on Spain as well as Portugal. Philagro was established in 1993 and later became a joint venture of Sumitomo Chemical, Nissan Chemical Corporation, and Nihon Nohyaku Co., Ltd. Kenogard was acquired by several Japanese companies, including Sumitomo Chemical, in 1992, and currently operates as a joint venture of Sumitomo Chemical and Nissan Chemical Corporation. Sumitomo Chemical has positioned these two sales companies as its key sales bases in France and Spain, two of the world’s leading agricultural countries.^*1

Europe is a huge crop protection market, surpassing North America and ranking third after Latin America and Asia.^*2 With stringent environmental regulations being increasingly enforced in the region, there is growing anticipation for biorationals^*3 to become a pillar for supporting future agricultural production. It is in this context that Sumitomo Chemical has established a strong presence in Europe by offering a wide range of biorationals, as well as chemical crop protection products for sustainable agriculture.

Starting with the full acquisition of shares in the two sales companies, Sumitomo Chemical will accelerate its efforts to further enhance its footprint and product portfolio in Europe. Specifically, the Company will integrate operations of Philagro with Sumitomo Chemical Agro Europe S.A.S., its wholly owned subsidiary supervising the crop protection business in Europe, Middle East, and Africa, while also exploring business reorganization and M&A opportunities, to further expand its crop protection business in Europe. At the same time, the Company will strive to increase the synergies between its chemical crop protection business, including several potential blockbuster fungicides that are currently under development, and its biorationals business. The Company has set a goal of more than doubling sales revenue from its crop protection-related businesses in Europe by 2030.

Sumitomo Chemical remains committed to contributing to sustainable agriculture and the stable supply of food worldwide.

*1 France is ranked 7th among the major agricultural countries in the world, and Spain 14th. The market size of these two countries combined is comparable to Argentina, which is ranked 4th (source: AgbioCrop Market Review 2023).
*2 Europe is ranked 3rd among the largest crop protection markets in the world, after Latin America and Asia, followed by North America and the Middle East and Africa (source: AgbioInvestor).
*3 The Sumitomo Chemical Group defines microbial pesticides, plant growth regulators and rhizosphere microbial products derived from natural sources, as well as solutions using these products to protect crops from pests and enhance crop quality and yield, as “biorationals.”

Overview of Philagro

Name	Philagro Holding, S.A.
Location	Lyon, France
Established	1993
President	Shinsuke Shojima
Business	Development and sales of crop protection products and agricultural materials
Capital	6.1 million euros
Shares	Sumitomo Chemical: 60%; Nissan Chemical: 30%; Nihon Nohyaku 10% (*before the share acquisition)

Overview of Kenogard

Name	Kenogard, S.A.
Location	Barcelona, Spain
Established	1981
Managing Director	Ivan Ibanez
Business	Development and sales of crop protection products and agricultural materials
Capital	925,000 euros
Shares	Sumitomo Chemical: 75%; Nissan Chemical: 25%

Overview of Sumitomo Chemical Agro Europe

Name	Sumitomo Chemical Agro Europe, S.A.S.
Location	Lyon, France
Established	1990
General Manager	Alberto Ancora
Business	Supervision of the crop protection business in Europe, Middle East, and Africa and development and sales of crop protection products and agricultural materials
Capital	3.99 million euros
Shares	Sumitomo Chemical: 100%

Contact

Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.
https://www.sumitomo-chem.co.jp/english/contact/public/