Thomas Etuh, founder of Tak Agro, and Theophilus Danjuma’s TY Holdings have successfully acquired Notore Chemical Industries Plc for $150 million.
The acquisition, which includes 60 percent ownership and management control, is expected to revitalise Notore’s operations and boost Nigeria’s agricultural sector.
The deal, structured as a special placement by Kwararafa Africa Limited, follows a competitive bid process that concluded with Etuh and Danjuma taking the reins of Notore Chemicals, which is based in Onne, Rivers State.
Notore, known for producing urea, NPK, and ammonia, has been struggling financially, reporting a group loss after tax of N34.6 billion in the first quarter of 2024.
In an exclusive interview, Etuh expressed his optimism for Notore’s future under new management. “I am excited about Notore, which is a major source of raw material,” Etuh said. “Notore’s products are exportable, and the company has its own power plant and jetty. The potential we see is huge.”
Etuh highlighted that the acquisition would bring much-needed capital to overhaul Notore’s complicated process plant, with plans to commence production next year.
Currently, efforts are underway to secure gas to power turbines capable of generating 30 to 40 megawatts, some of which will be sold to local electricity distributors.
Once the plant is fully operational, the new management intends to expand production capacity over the next three to four years, including the construction of a second production train that could double output to two million tonnes of fertiliser annually.
Since the acquisition, significant management changes have been made. Seven non-executive directors and the group’s deputy managing director have resigned, making way for Etuh’s appointment as chairman and the inclusion of six new non-executive directors on the board.
Danjuma Etuh has been appointed as deputy managing director.
With this acquisition, the Etuh-Danjuma partnership aims to turn around the fortunes of Notore Chemicals and transform it into a leading force in Nigeria’s fertiliser sector.
As production ramps up, the investment is expected to not only generate profits for shareholders but also contribute to the country’s agricultural self-sufficiency by increasing the availability of fertiliser for local farmers and supporting the export market.
The acquisition of Notore Chemicals comes at a crucial time for Nigeria’s economy, where the agriculture sector plays a key role in diversification efforts.
The revitalisation of Notore is seen as a step toward ensuring a steady supply of fertiliser, which is essential for increasing crop yields and supporting food security initiatives.