(Reuters) - Agricultural chemicals maker Nufarm Ltd NUF.AX said it would buy a range of European crop protection product lines for $490 million to strengthen its position in Europe where it generates its highest crop protection margins.
The acquisition is expected to be mid-to-high single digit earnings per share accretive in fiscal 2019, the company said in a statement.
The portfolio is also expected to generate revenues of about A$250 million ($195.28 million) and earnings before interest, tax, depreciation and amortization of about A$95 million to A$100 million in the 2019 financial year, Nufarm added.
Nufarm said the deal will be funded by a capital raising of about A$446 million and existing debt facilities.
The company would also buy existing product inventory for about $50 million after completing the deal, it said.
The company had requested for a halt in trading of its shares earlier in the day ahead of the announcement.
($1 = 1.2802 Australian dollars)
Reporting by Christina Martin in Bengaluru; Editing by Stephen Coates and Eric Meijer
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