Agrofert takes over AdBlue supplier GreenChem

The international Agrofert Group, with headquarters in Prague, Czech Republic, is to take a majority stake in the Dutch-based company GreenChem, one of the leading European suppliers of AdBlue. AdBlue is the liquid used by many new trucks and cars to reduce emissions and to reach the latest European standards for on the road vehicles.

The acquisition will be made by Duslo, a Slovak-based affiliate of Agrofert. The capital injection of Duslo into GreenChem will be made possible by an increase of equity of GreenChem Holding International B.V., the ultimate holding company of the GreenChem Group. Duslo has been one of the suppliers to GreenChem of urea, the raw material required to produce AdBlue. Duslo had already taken over the Czech affiliate of GreenChem in two steps during 2008/2009.

GreenChem has affiliates in most Western European countries and it is the second largest supplier and producer of AdBlue in Europe. GreenChem provides customers with both AdBlue and the hardware necessary to store and handle it. The company uses around 450 oil distributors across Europe as its exclusive dealers and it co-operates with truck producers, major oil companies and truck dealers in bringing the product to the market.

GreenChem uses almost twenty blending sites for the production of AdBlue and brings the product to its customers through a dedicated supply chain, offering a full service integrated supply solutions, including the filling hardware needed. GreenChem has supplied thousands of customers – mainly truck and bus companies – with integrated filling / storage solutions for their home base.

Agrofert Group has a consolidated turnover of approximately €4 billion and employs over 25,000 people. Agrofert is involved in agricultural production and trading, the chemical industry and food processing and is also the second largest urea producer in Europe. Agrofert has affiliates inside and outside Europe, though its core markets are the Czech Republic and Slovakia.

Both companies expect that the co-operation will strengthen the position of GreenChem, giving it possibilities for further growth, a stronger market position and security of supply.

Completion of the contemplated transaction is subject to the approval of the relevant anti-trust authorities, for which the parties have recently applied.