Mumbai: Chemicals producer UPL Ltd (formerly known as United Phosphorus) will acquire the Florida-based Arysta LifeScience Inc (Arysta) - a global provider of innovative crop protection solutions - for $4.2 billion in an all-cash deal.

The acquisition will be done through UPL's wholly owned subsidiary UPL Corporation Ltd (UPL Corp), which will be backed by the Abu Dhabi Investment Authority (ADIA) and TPG.

While the ADIA and TPG will invest $600 million each, they will get a combined stake of around 22 per cent in UPL Corp.

According to an announcement made on Friday, UPL Corp has signed a definitive agreement with Platform Specialty Products Corporation to acquire Arysta LifeScience and its subsidiaries.

Apart from crop protection solutions, Arysta provides bio-solutions and seed treatment.

The buyout, which is subject to customary closing conditions and regulatory approvals, is expected to be completed in late 2018 or early next year.

UPL said it will use a combination of newly issued equity and debt for funding the acquisition.

UPL Corp has already received debt financing commitments of $3 billion from MUFG Bank Ltd and Cooperatieve Rabobank U.A. (Hong Kong Branch).

UPL, which is not new to acquisitions, said the Arysta buyout will not only provide annual synergies of over $200 million but will also provide significant opportunity to drive revenue growth due to broader portfolio, geographic presence and shared innovation capabilities.

According to the company, the acquisition will create a "New UPL" and is a step towards its objective of creating an integrated patent and post-patent agricultural solutions business with a global footprint. It will result in UPL becoming the fifth largest global crop protection company.

UPL said it will be able to offer a complete basket of solutions for various arable as well as specialty crops, comprising crop protection chemicals, bio-solutions and seeds, covering the entire crop value chain from planting to post harvest. Further, the acquisition is also expected to give it access to a variety of patented products.

"The acquisition of Arysta is a transformational transaction for UPL. Arysta has a differentiated position in the crop protection market given its focus primarily on specialty applications and tailored local solutions. This is in line with our vision of becoming a premier global provider of agricultural solutions designed to secure the world's long-term food supply," Jai Shroff, group chief executive officer and executive director of UPL, said.

Arysta was formed through a combination of Arysta Life Science, acquired by Platform in February 2015, and two additional crop protection chemical companies - Agriphar and Chemtura Agro Solutions of Chemtura Corporation - bought by Platform in 2014.

For 2017-18, Arysta had reported an operating revenue of $2 billion and an operating profit of $424 million.

Rakesh Sachdev, chief executive of Platform, said, "With its scale and capabilities, we believe the combined companies will represent a compelling value proposition for growers, distributors, suppliers and innovation partners in a consolidating market".

UPL has been a serial acquirer with over 25 buyouts in the past 20 decades. Began in 1969 as a manufacturer of red phosphorus used in safety matches and pesticides, it now has operations in 133 countries covering the entire agrochemicals value-chain from seeds to specialised post-harvest products.