Key Takeaways
➡️ Sumitomo Chemical has acquired all shares of Philagro Holding, S.A., its France-based crop protection subsidiary.
➡️ The company will also acquire all shares of Kenogard, S.A., a Spanish crop protection sales company, by the end of fiscal year 2024.
➡️ These acquisitions are part of Sumitomo Chemical’s strategy to expand its crop protection business in Europe.
➡️ The company aims to integrate Philagro with Sumitomo Chemical Agro Europe S.A.S. and explore business reorganization and M&A opportunities.
➡️ The company seeks to more than double sales revenue from its crop protection-related businesses in Europe by 2030.
Sumitomo Chemical’s Strategic Expansion in Europe
Acquisition Details
Sumitomo Chemical has announced the full acquisition of Philagro Holding, S.A., a crop protection product sales company based in France. Additionally, the company has reached an agreement to acquire all shares of Kenogard, S.A., a crop protection sales company operating in Spain and Portugal. The transaction for Kenogard is expected to be finalized within the fiscal year 2024.
Market Positioning
Both Philagro and Kenogard specialize in the distribution of agricultural inputs, including chemical and biorational crop protection products. Philagro was established in 1993 as a joint venture involving Sumitomo Chemical, Nissan Chemical Corporation, and Nihon Nohyaku Co., Ltd. Kenogard, acquired in 1992, currently operates as a joint venture of Sumitomo Chemical and Nissan Chemical Corporation.
Strengthening Market Presence
The European Crop Protection Market
Europe is a major global market for crop protection, ranking third after Latin America and Asia and surpassing North America. With increasing environmental regulations, there is growing interest in biorationals—biologically derived crop protection solutions—to support sustainable agriculture.
Sumitomo Chemical’s Role
The company has positioned itself in this evolving landscape by offering a broad portfolio of biorationals and chemical crop protection solutions. The acquisitions will further consolidate its presence in Europe and enhance its ability to respond to changing agricultural needs.
Integration and Future Growth For Sumitomo
Business Integration Strategy
As part of its expansion strategy, Sumitomo Chemical will integrate Philagro into Sumitomo Chemical Agro Europe S.A.S., which oversees the company’s crop protection business in Europe, the Middle East, and Africa. Additionally, the company is actively exploring business reorganization and M&A opportunities to strengthen its market position.
Future Revenue Goals
The company plans to increase synergies between its chemical crop protection segment—including several fungicides under development—and its biorationals business. The company has set a target of more than doubling its European crop protection-related sales revenue by 2030.
With these acquisitions, Sumitomo Chemical aims to reinforce its commitment to sustainable agriculture while driving growth in the European market.
