FarmWorks Australia says it will focus on agricultural chemicals, after selling off its branch and agency network in Western Australia to Ruralco Holdings for approximately $5 million.
Ruralco also agreed to an off-take agreement with FWA, where FWA’s subsidiary, Conquest Crop Protection, will supply Ruralco with products to the value of $20 million per year for three years.
FWA said the transaction was a significant step in focusing the operations of the company and consolidating its core competency in agricultural chemicals, through the expansion of the Conquest range.
“FWA intends to undertake this expansion through the introduction of new horticultural products as well as acquiring differentiated product and intellectual property,” the company said.
“This IP has the potential to expand beyond the traditional crop protection ranges and into other market segments.”
The company also said the divestment of its retail and agency network would remove substantial costs from FWA’s operations.
“In line with the disposal of the branch and agency network it is proposed to seek shareholder approval to change the name of the company,” FWA said.
