AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI; AGRIW), an intellectual property (IP)-driven agtech firm committed to enhancing sustainable cultivation and producing food and plant products, has officially terminated its attempt to acquire Delphy Group BV. The latter is a leading agriculture and horticulture consulting company based in the Netherlands.
This mutual decision to terminate the sales and purchase agreement comes after an exhaustive due diligence process, an assessment of the historical and forecasted financials, potential impairment risk, and current market conditions. The parties could not agree upon a revised purchase price despite extensive discussions.
Ingo Mueller, CEO of AgriFORCE, expressed his disappointment but also stressed the importance of due diligence. “While we are disappointed to end our efforts to acquire Delphy Group BV, it was the prudent decision after an extensive due diligence process,” he said. “We have a rigorous M&A process that demonstrates our strict standards and discipline.”
Despite the decision to end acquisition attempts, Mueller emphasized the value Delphy Group BV offers. He stated, “After over a year of collaboration, due diligence, and involvement with Delphy in helping craft their strategic growth plans, we remain convinced of the power of knowledge and the value Delphy brings to its customers. We hope to find a way to continue working together and revisit this collaboration later.”
AgriFORCE will continue to pursue other M&A opportunities that align with its objectives aggressively. These include the potential acquisition of undervalued, accretive, and highly synergistic businesses, some of which have already been announced. Mueller added, “We look forward to providing further updates as we advance these alternative transactions, which we believe will ultimately drive much greater value for our shareholders.”