SINGAPORE—Halcyon Agri Corp. Ltd., a global natural rubber supply chain manager, has completed its acquisition of the assets and entities of the Polymer Division of RCMA Group Pte. Ltd. In doing so, the firm established a Halcyon Rubber and Plantations business unit that will be headed by Robert Meyer, Halcyon Agri executive director and CEO.
Halcyon Agri completed the $31.8 million purchase roughly two months after it entered into an agreement to purchase RCMA. The final purchase price was about $2 million less than the maximum price Halcyon Agri first mentioned.
In addition to the newly acquired RCMA division, HRP includes Halcyon Agri's existing industrial distribution and latex division. HRP said this will provide industrial-grade natural rubber, latex and synthetic rubber to consumer product manufacturers.
HRP will process the latex at Sud Cameroun Hevea S.A. and Hevea Cameroun S.A., Halcyon Agri's factories in West Africa. This will leverage Halcyon Agri's global distribution network for seamless delivery to the global specialty tire and non-tire industry, it said.
The acquisition brings to Halcyon Agri some of the most renowned trade names in the natural rubber trading industry, including Alan L. Grant Polymer, Corrie McCall Rubber and Wurfbain Polymer, the company said. These will be added to the Centrotrade name borne by Halcyon Agri's sales and distribution arm, Centrotrade Holdings Pte. Ltd.
"The combined franchises…will provide the global marketplace for specialty latex and rubber with unparalleled technical support and laboratory and certification services," the company said in a press release.
The acquisition also will allow New Continent Enterprise Pte. Ltd., Halcyon Agri's sales and distribution arm, to better position its origination and hedging capabilities and increase distribution volume, the company said.
New Continent will distribute Heveapro, Halcyon Agri's proprietary brand of sustainable rubber, to Chinese tire manufacturers, according to the company. It also will provide end-to-end chain services for technically specified rubber products from Halcyon Agri's factories.
The impact of the acquisition on New Continent's year-to-date third quarter 2017 figures will be a 25-percent increase in revenue to $753 million and a 21-percent increase in volume to 397,485 metric tons, the company said.
More than 60 experienced RCMA employees have been added to Halcyon Agri's 15,000-plus employees.
Halcyon Agri operates 54 locations around the world, and owns 39 processing facilities in most major rubber-producing areas. It is listed on the Main Board of the Singapore Exchange with a market capitalization of more than $700 million.