S&P: Arysta on positive watch

Standard & Poor’s said it placed the B long-term corporate credit ratings on Arysta LifeScience Corp. and Arysta LifeScience SPC, LLC on CreditWatch with positive implications.

The agency also said it placed the B and CCC+ long-term debt ratings on Arysta LifeScience SPC on CreditWatch with positive implications.

The CreditWatch placement follows news that Platform Specialty Products Corp. has reached a definitive agreement with Arysta group’s ultimate parent and financial sponsor, Permira funds, to acquire Arysta group for about $3.51 billion, S&P said.

The agency said it expects the transaction to close in the first quarter of 2015, subject to regulatory approval.

Arysta group is one of the world’s 12 largest makers of crop-protection products. Platform Specialty is acquiring other crop-protection companies and expanding its business, the agency said.

Completion of the acquisition of Arysta group is likely to create the 10th-largest vertically integrated agricultural chemicals company in the industry, S&P said.

As a result, the agency said it believes Arysta group also is likely to benefit from larger economies of scale and diversified end markets following the acquisition.

The agency said it is monitoring the deal and the likelihood of debt holders exercising change-of-control clauses, along with the company’s ability to meet its obligations.

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