MIRA
INFORM REPORT
|
Report Date : |
5th
February, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
AGAN CHEMICAL MANUFACTURERS LTD. |
|
|
|
|
Registered Office : |
P.O. Box 262, Northern
Industrial Zone, Ashdod 77102, Israel |
|
|
|
|
Country : |
Israel |
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
07.05.1954 |
|
|
|
|
Com. Reg. No.: |
51-012503-2 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturers, exporters and
marketers of chemicals for agricultural purposes, i.e. plant growth
regulators, plant protection chemicals, herbicides, etc. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
Company Name & Address
AGAN CHEMICAL MANUFACTURERS LTD.
Telephone 972 8 851 52 11
Fax 972 8 851 53 88
P.O. Box 262
Northern Industrial Zone
ASHDOD 77102 ISRAEL
HISTORY
Originally established in 1945 as
a non-registered business.
Converted into a private limited
company and registered as such as per file No. 51-012503-2 on the 7.5.1954.
Converted into a public limited
liability company and registered as such as per file No. 52-003405-9 on the
17.12.1982.
At a later date published a
prospectus offering shares to the public and its shares were listed on the Tel
Aviv Stock Exchange.
Due to change of ownership and
AGAN’s merger with the MAKHTESHIM GROUP, subject is no longer traded on the
Stock Exchange since May 1998.
SHARE CAPITAL
Authorized share capital NIS
50,000,000.00, divided into - 50,000,000 ordinary shares of NIS 1.00 each, of
which shares amounting to NIS 15,065,980.00 were issued.
SHAREHOLDERS
Company is fully owned by
MAKHTESHIM – AGAN INDUSTRIES LTD. (hereinafter M.A.), a subsidiary of KOOR
INDUSTRIES LTD., both public limited liability companies, whose shares are
traded on the Tel Aviv Stock Exchange KOOR is also traded on the Nasdaq Stock
Exchange and is part of the I.D.B concern, controlled by Nochi Dankner.
DIRECTORS
1.
Avraham
Biger, Chairman and General Manager of the M.A. Group,
2. Avraham Kleiner, subject's
General Manager,
3. Israel Tamir,
4. Michael Pikarsky,
5. Zvi Zur,
6. Shlomo Yuness,
7. Danni Porat,
8. Eli Asraf,
9. Shlomo Yanai.
BUSINESS
Subject is part of the
MAKTESHIM-AGAN (M.A.) Group.
Manufacturers, exporters and
marketers of chemicals for agricultural purposes, i.e. plant growth regulators,
plant protection chemicals, herbicides, etc.
Subject exports 90% of its
production to more than 100 countries.
Subject acquired know how from
Australian company CROP CARE.
Operating from an owned plant on
an area of 33,000 sq. meters in the Northern Industrial Zone, Ashdod. Also
operating from rented M.A. Group headquarters offices in 1 Azrieli Center, Tel
Aviv. M. A. Group also operates from smaller plants in Colombia, Spain and
Greece. Distribution through 23 marketing companies and offices worldwide.
Having 600 employees and some
3,200 employees serving the M. A. Group.
MEANS
Financial data is included in the
consolidated financial statements of parent company, MAKHTESHIM – AGAN
INDUSTRIES LTD., which shows:
US$
(thousands)
31.12.2005 30.09.2006
ASSETS
Current assets
Cash
and cash equivalents 71,293 117,060
Short
term investments 1,269 1,310
Trade
receivables 383,246 448,157
Other
receivables 86,414 103,214
Inventory _566,416 _577,066
1,108,638 1,246,807
Investments, loans and long term
debentures 22,684 42,011
Fixed assets (net) 463,366 497,085
Other assets and deferred expenses (net) 536,581 _540,439
2,131,269 2,326,342
======== ========
LIABILITIES
Current liabilities 802,341 965,811
Long term liabilities 168,192 176,123
Minority rights 26,549 30,171
Equity 1,134,187 1,154,237
2,131,269 2,326,342
======== ========
MAKTESHIM-AGAN current market value US$
2,663.2 million.
Subject is an “Approved Enterprise” and as
such enjoys tax benefits and state incentives. Israeli Investment Centre
Administration approved an investment plan of US$ 6 million in subject's Ashdod
plant (28.10.1997).
In June 2004, the investment
center approved a further US$ 14.7 million investment plan for the expansion of
subject’s plant.
There is 1 charge for an unlimited amount
registered on the company’s assets, in favor of a foreign company.
ANNUAL SALES
MAKHTESHIM-AGAN INDUSTRIES LTD.
Consolidated Statement of Income
US$ (thousands)
Year
ended 31.12
2003 2004 2005
Sales 1,177,255 1,539,702 1,740,717
Gross profit 446,950 595,794 681,002
Operating income 212,395 289,187 331,071
Pre-tax income 136,194 218,881 252,286
Net income 102,774 165,527 205,493
====== ======= =======
Parent's consolidated first 3 quarters of
2006 sales US$ 1,359,727,000 (a 1.8% increase compared to the parallel period
in 2005), making a gross profit of US$ 475,015,000, an operating income of US$
193,910,000 million and a net income of US$ 122,396,000.
Subject ended 2001 with a net
profit of NIS 111,614,000.
Subject ended 2002 with a net
profit of NIS 172,036,000.
Subject ended 2003 with a net
profit of NIS 259,867,000.
Subject ended 2004 with a net
profit of US$ 87,892,000.
Subject ended 2005 with a net
profit of US$ 131,493,000.
(Subject's above mentioned net
income is consolidated with its subsidiaries).
Subject's (itself) 2005 sales
were US$ 530,000,000, making a net profit of
US$ 73,000,000.
OTHER COMPANIES
AGAN MARKETING CHEMICALS LTD.,
100%,
AGAN AROMA & FINE CHEMICALS
LTD., 100%, developers, manufacturers, marketers and exporters of aroma
substances for detergents.
M.A. INDUSTRIES LTD. also
controls (all fully owned by unless otherwise stated):
MAKHTESHIM CHEMICAL WORKS LTD.,
which together with subject is responsible for the Group's main activities,
developers, manufacturers and marketers of crop protection products -
pesticides, insecticides, herbicides, polyester resins, photo-chemicals, etc.
AGAN ENGINEERING ENTERPRISES
(1988) LTD.
BIO DAR LTD., micro capsulation
manufacturers,
DALIDAR
PHARMA ISRAEL (1995) LTD., develops, and market photo pharmaceuticals (herbal
based remedies)
MAKHTESHIM AGAN HEALTH AND FOOD
ADDITIVES LTD.
LYCORED LTD., manufacturers,
exporters and marketers of non agro natural food additives
PRIZMA INDUSTRIES LTD.
LUXEMBOURG PHARMACEUTICALS LTD.,
importers and marketers of pharmaceuticals, medical equipment and supplies
ISRAMEDCOM LTD.
LUXVISION LTD.
MILENIA PARTICIPACOES S.A.,
incorporated in August 1998, merging the activities Brazilian companies DEFENSA
and HERBITECHNICA
MAGAN ARGENTINA S.A., Argentina
ARAGONESAS AGRO S.A., Spain
CELSIUS PROPERTY B.V.
IRVITA PLANT PROTECTION N.V.
QUENA CORP.
FAHRENHEIT HOLDINGS B.V.
MAKHTESHIM AGAN HOLDING B.V.
MAKHTESHIM AGAN PARTICIPACOES
MAKHTESHIM AGAN COSTA RICA SA
MAKHTESHIM AGAN ESPANA SA
MAKHTESHIM AGAN NORTH AMERICA
INC.
MAKHTESHIM AGAN FRANCE SARL
MAKHTESHIM AGAN U.K. LTD.
MAKHTESHIM AGAN ROMANIA SRL
MAKHTESHIM AGAN THILAND LTD.
MAKHTESHIM AGAN ITALIA SRL.
MAKHTESHIM AGAN SOUTH AFRICA PTY
LTD.
MAKHTESHIM AGAN INDIA PRIVATE
LTD.
MAKHTESHIM AGAN POLAND SP.ZO.O
MAKHTESHIM AGAN SWEDEN AB
MAKHTESHIM AGAN PORTUGAL LTD.
MAB PARTICIPACOES S/C LTD.,
BIOTECH M.A.H., jointly with
HAZERA, investing in biotech start-ups
PROFICOL S.A., Colombia, 57.5
MAGAN JAPAN CO. LTD.
MAGAN HB B.V.
MAGAN ITALIA SRL
MAGAN HOLDING GERMANY GMBH
MAGAN KOREA CO. LTD.
ALB HOLDINGS U.K.
FEINCHEMIE SCHWEBDA GMBH
MA U.S. HOLDING INC., USA
AGRONICA AUSTRALASID PTY LTD, Australia
And several more subsidiaries.
BANKERS
Bank Leumi LeIsrael Ltd., Central
Branch (No. 800), Tel Aviv.
Bank Hapoalim Ltd., Ashdod Branch
(No. 658), Ashdod.
Israel Discount Bank Ltd., Ashdod
Branch (No. 004), Ashdod.
Citibank Ltd., Central Branch
(No. 001), Tel Aviv.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
Having ISO 9000, 9002, ISO 14001
(Environmental Management Standard) and TA-LUFT standard, GLP German
authorization.
In January 2007, Avraham Kleiner,
subject's General Manager, won the local Industry Award for 2006, for doubling
subject's sales and tripling its profits.
MAKHTESHIM AGAN is considered the
world’s largest producer of generic products for plant conservation and one of
the leading companies in the agro-chemical sector, ranked 7th in
world sales in the agro-chemical field (in 2004) with 3.8% of global sales.
Subject was awarded the 1999
Environmental Shield of industrial excellence in preserving and improving the
ecology. The judges’ panel acknowledged subject’s investment of NIS 40 million
in the field of disposal of toxic waste, polluting substances. Subject will invest
in 2000-2 a further US$ 23 in this area.
Subject has adopted the German
ecological standard T.A. LUFT, which is the strictest in the world, and this
year subject’s efforts were recognized when it won the first prize on
ecological achievements.
In June 2002, parent company
completed the acquisition of FEINCHIMI, of Germany, for a sum of US$ 21
million. The German company’s 2001 sales were
US$ 40 million.
In August 2000 M. A. completed
its acquisition of MILENIA PARTICPACOES S.A. of Brazil, the company through
which M.A. operates in Brazil, one of subject’s strongest markets, for a sum of
US$ 45 million.
In June 2004, it was reported
that the M.A. Group acquired 45% in CONTROL SOLUTIONS INC. (CSI), an American
pesticide company, for a sum of US$ 13.5 million. In August 2005, it was
reported that it acquired further 15% in CSI. CSI's sales in 2003 amounted to
US$ 45 million.
In July 2004, parent acquired
FARMOZ, Australia 4th larges Agrochemical Company.
In September 2004, subject's
parent acquired 50.1% of RICECO of the USA, developers and manufacturers of
herbicides for rice growing.
In March 2005, subject's parent
acquired 49% of Dutch company MABENO in a shares swap deal (with an option to
increase stakes up to 55%).
In May 2005, subject's parent
acquired 70% of Hungarian distribution company BIOMARK TRADING, with an option
to increase stakes up to 100%.
In April 2005, M.A. signed a
strategic deal to distribute BAYER CropScience’s agricultural insecticides.
In the framework of its expansion
program in the non-agricultural pesticide products, subject's parent M.A.
acquired in 2006 shares in 2 foreign companies (30% of ALLIGARE of the USA, and
60% of Italian KOLLANT).
In November 2006 M.A. acquired a
Czech distributing company (AGROVITA), and in parallel completed the
establishment of a new subsidiary in Russia. This is in the framework of
expanding penetration into the Eastern European markets, where the M.A. Group
sees large potential for its agro-chemical products.
In the beginning of December 2006
parent M.A. published an earning warning towards the 4th quarter of
2006, as it will have to allocate US$ 10 million of its accounts for settling a
lawsuit in the USA. M.A. will have to compensate an American ethical
agro-chemical company for an authorization it obtained for marketing an
insecticide (which they acquired in 2002 but has not made use of). It appears
that M.A. was not aware at the time to its commitment in this matter.
In February 2007 it was reported
that subject will purchase raw materials from China during 2007 in volume of
US$ 110-120 million, which is 25% of the total raw materials purchasing (the
whole M.A. Group will purchase from China in volume of US$ 200 million of raw
materials).
Subject is part of the I.D.B. Group, one of Israel's
largest concerns, which controls the KOOR Group, as well as many other
companies in Israel and abroad.
During the first half of 2006
businessman Nochi Dankner, who controls the I.D.B. Group, increased his stake
in KOOR INDUSTRIES LTD. (which controls subject's parent M.A. with 37%) from
10% to 44%, thus becoming the main shareholder of KOOR. He acquired the shares
from the Bronfman Group. The M.A. Group is considered as a strategic asset of
the I.D.B.
In December 2006 I.D.B. increased
its holdings in KOOR to 52%. KOOR's current market value is US$ 929 million.
According to the Chairman of the
Chemical, Pharmaceutical and Environment Division at the Industrialists
Association, total sales of the branches in 2006 witnessed a remarkable 12.6%
growth to US$ 17.4 billon, after in 2005 sales increased by 10% from 2004.
2006 exports of the branch were
US$ 8.8 billion (some one third attributed to the chemical industry), a 15.7%
increase from 2005, and sales to the local market reached US$ 8.6 billion, a
10% increase from 2005.
The chemical and pharmaceutical
industries are the 2nd largest export branch (after the hi-tech) and
comprise 30% of Israel’s industrial exports. The industry employs 28,700
employees.
Purchasing abroad amounted to US$
1.5 billion in 2006.
SUMMARY
Good for trade engagements.
Maximum
unsecured credit recommended up to several US$ millions.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|