Marronen Bio Innovations and Bioceres Crop Solutions Announce Partnership in All-Stock Deal

Mar 17, 2022 By MarketDepth

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Marrone Bio Innovations, Inc. (NASDAQ: MBII) and Bioceres Crop Solutions Corp. (NASDAQ: BIOX) has announced entry into a definitive agreement to combine the companies in an all-stock transaction.  The terms of the transaction have been unanimously approved by the Board of Directors of both companies as each share of MBI common stock will exchange at closing for ordinary shares of Bioceres at a fixed ratio of 0.088, or an approximate value of USD 236 Million based on closing share prices on March 15th, 2022 and the number of current outstanding MBI shares.  

“We are very excited about the value creation that will result from this combination for customers, employees and investors. By combining our current commercialized products and pipelines, we will be in a position to serve all major agriculture input categories with low environmental impact, highly efficacious, biological based solutions.”

Bioceres Chief Executive Officer Federico Trucco

Trucco added, “MBI’s commercial footprint in North America and Europe will strongly complement our existing efforts in these geographies, while Bioceres’ leadership in Latin America will provide an excellent channel for MBI’s portfolio in these important row-crop markets. Together, we will create a winning platform in one of the most dynamic segments of agriculture.”

Over $8 Million in Cost Overlap

“Our merger has the potential to accelerate global reach, broaden our product offerings and expand our R&D programs,” said Kevin Helash, Chief Executive Officer of Marrone Bio. “Consumer and grower demand is accelerating for agricultural products that help produce safe, affordable food in a sustainable manner. We will be able to further serve that market opportunity and provide our distribution partners and our growers with greater returns on investment.” Helash noted that the merger is anticipated to generate $8 million in annual cost synergies, the majority of which relate to the elimination of duplicative public company expenses and consulting fees.

“MBI and Bioceres have a shared culture of innovation and entrepreneurial spirit. With complementary R&D capabilities, the combination unlocks many additional possibilities for further groundbreaking commercial solutions.”

Kevin Helash, Chief Executive Officer of Marrone Bio

“Bioceres has a proven track record in successfully integrating and scaling up businesses that have cultures focused on the commercialization of innovation. Since we integrated Rizobacter just over five years ago, revenue almost tripled and margins have expanded, driving ~4x increase in EBITDA. Rizobacter had the team, the products, the industrial capabilities and strong customer relationships needed to materialize growth, and we partnered with their leadership to unlock the opportunity,” said Enrique Lopez Lecube, Bioceres’ CFO.