BEIJING, June 30, 2015 /PRNewswire/ --
On Monday, June 29th, Stockton Group Israel and China's Sichuan Hebang Corporation Limited entered into an agreement whereby Hebang Group will acquire a 51 percent stake in Stockton Group for $90 million, enabling Stockton increased research and development capabilities and market penetration in the biofungicide market.
The Hebang Group is a public Chinese company, traded on the Shanghai Stock Exchange, and is active in a variety of industrial activities, including the agrochemical industry. This is the Hebang Group's first investment outside of China.
Stockton, a global crop protection company and a leader in the development of botanical based biopesticides founded 20 years ago by Peter Tirosh and managed by Ziv Tirosh, developed its first environmentally-friendly biofungicide, Timorex Gold. The product is successfully sold in nearly 20 countries to treat a large number of crops, such as rice, coffee, grapes, tomatoes, bananas and a wide variety of other fruits and vegetables.
Hebang's goal with this investment in Stockton is to "support Stockton's growth as a global leader in environmentally-friendly biofungicides."
Stockton recently received a license to sell Timorex Gold in the United States. The investment from Hebang will allow Stockton to accelerate its penetration into this and additional markets, as well as to advance the development of other environmentally-friendly products through ongoing cooperation with research and academic institutes in Israel and around the world.
Ziv Tirosh, Stockton's CEO, noted that the company is currently in the process of receiving regulatory approval in China, and the partnership with Hebang will assist with penetration into the Asia.
According to the agreement, Stockton will continue to operate as an Israeli company with no change to its management, while the controlling shareholder of Hebang, Mr. He Zhenggang, will serve as the company's chairman following the investment.
Guy Elitzur, Stockton's VP of Finance and Operations, led the efforts, together with attorney Esther Koren (CPA) from the law firm GKH, which has provided assistance to Stockton for many years. Hebang's legal team included Joey Shabot from Greenberg Traurig LLP's Israel office.
The transaction is expected to close within 90 days, subject to regulatory approvals in China.
SOURCE Stockton Group