SINGAPORE—Halcyon Agri Corp. Ltd., a global natural rubber supply chain manager, entered into an agreement to acquire the assets and entities of RCMA Group Pte. Ltd.'s polymer division for up to $33.8 million.
The acquisition, which will be funded by existing internal resources, comes less than two months after the completion of Halcyon's disposal of its 35 percent stake in Siat S.A. for about $226 million in October. The acquisition is subject to fulfillment of certain conditions, including approvals from regulatory authorities. It is expected to complete in the first week of January, according to a Halcyon release.
The acquired assets will be integrated into two of Halcyon's sales and distribution arms, Centrotrade Holdings Pte. Ltd. and New Continent Enterprises Ltd. The combination will create one of the world's largest distribution hubs for latex and specialty tire rubber, Halcyon said.
A total of four business units from RCMA, a global commodity-trading company headquartered in Singapore active in the rubber and energy markets, will be integrated into CTH, which has been set up to function as an active asset manager and funding platform. The acquisition of RCMA Ltd. and RCMA Terminals B.V. will be in the form of equity deals, while Halcyon Agri will acquire polymer-related assets of RCMA Europe B.V., RCMA Americas Inc. and RCMA Commodities U.K. Ltd.
The acquisition will also include the Wurfbain, Corrie MacColl and Alan Grant distribution franchises. Besides the expansion of its European and American distribution assets, the acquisition provides Halcyon Agri with a foothold in the synthetic rubber market, Halcyon said.
NCE will take over selected employees from the Singapore-based polymer division of RCMA Asia Pte. Ltd., which will position NCE to develop its organization and hedging capabilities, and increase distribution volume accordingly, Halcyon said.
CTH will take employees from RCMA Polymer Division of RCMA Commodities U.K. Ltd.
The acquisition also marks the renaming of GMG Global Ltd. to Halcyon Rubber & Plantations Pte. Ltd. GMG Global became the parent company of CTH after it was acquired by Halcyon and delisted from the Singapore Exchange in 2016. In addition to CTH, HRP also owns Societe de Developpment du Caoutchouc Cameruonais.
CTH expanded distribution activities under CentroTrade Deutschland GmbH, adding China as an important growth driver to its international markets of Malaysia, U.S. and Europe. Centrotrade will continue to develop its Centex brand of specialized latex, with a specific focus on marketing the latex and rubber produced from the two Cameroon plantations owned and operated by SDCC.
Halcyon's in-house laboratory and testing facilities, along with the combined franchises of Centrotrade, Wurfbain, Corrie MacColl and Alan Grant, will provide the global marketplace for specialty latex and rubber with additional technical support and expertise for a global supply network, Halcyon said.
The acquisition also enhance Halcyon's position in the global non-tire majors and specialty tire segment.