Shares in agribusiness Elders Ltd (ASX: ELD) are up 2.72% to $7.92 today, after the company updated the market with new acquisition and divestment plans.
Elders entered into a binding agreement to buy all the shares in agricultural chemical company Titan Ag Pty Ltd, expecting to generate around $7 million additional EBIT in the first year of ownership. The acquisition is expected to be completed on May 1.
On the same day, Elders will also complete the acquisition of Victoria-based livestock company Kerr & Co.
While expanding in Australia, Elders will divest its Indonesian feedlot and processing assets, which ceased being profitable due to high cattle costs and changing local policies. CEO Mark Allison said Elders will continue to have a presence in Indonesia, China and Vietnam and intends to grow in these countries through retail meat distribution.
Elders saw its share price grow 78% in the past 52 weeks and recently attracted investments from Commonwealth Bank of Australia (ASX: CBA) and Chinese firm Sichuan Hebang Biotechnology, both with a 5% interest in the company.
