COMPO EXPERT Enters Strategic Partnership in China with Leading Chinese Fertilizer Company Xinyangfeng

PR70545

MÜNSTER, Germany, October 12, 2017 /PRNewswire=KYODO JBN/ --

- Comprehensive cooperation in terms of technology development, localized

production and commercialization

COMPO EXPERT GmbH (COMPO EXPERT), a leading manufacturer of specialty

fertilizers for commercial use and portfolio company of the

London-headquartered global private equity firm XIO Group, is entering a

strategic partnership for the brands Blaukorn® and NovaTec® with Hubei

Xinyangfeng Fertilizer Co., Ltd (Xinyangfeng), a leading fertilizer

manufacturer in the People's Republic of China. In the future, the two

companies will engage in close and comprehensive cooperation in technology

development, localized production and joint commercialization of highly

efficient, environmentally friendly fertilizers for the growing Chinese market.

Comprehensive cooperation in terms of technology development, localized

production and commercialization for highly efficient and environmentally

friendly fertilizers under the brands Blaukorn® and NovaTec®

Strengthening product series of nutrients for cash crops and high value crops

that deliver considerable benefits for Chinese farmers

COMPO EXPERT with significantly extended access to growing Chinese market

Efficient local production with improved ecological footprint

COMPO EXPERT CEO Thomas H. Ahrens: "This strategic partnership is a key

milestone in the consistent implementation of our global growth strategy."

Xinyangfeng President Bin Huang: "Xinyangfeng's decades of experience and our

extensive distribution network in China are perfectly complemented by the great

technology and production expertise of COMPO EXPERT."

Thomas H. Ahrens, the CEO of COMPO EXPERT said: "China is a key building block

on our way to become the leading manufacturer of specialty fertilizer for

commercial use worldwide. Xinyangfeng is an outstanding fit for us as a

strategic partner and the partnership agreement we signed today is a key

milestone in the consistent implementation of our global growth strategy. I am

firmly convinced that our cooperation will be a success and will create value

for both companies as well as Chinese agriculture as a whole."

Through the cooperation, Xinyangfeng will become COMPO EXPERT's exclusive

partner for the brands Blaukorn® and NovaTec® in China. With its extensive

nation-wide distribution network through 30 sales offices and approximately

4,100 wholesalers and 60,000 retailers, Xinyangfeng has a very strong position

in the Chinese fertilizer market, which will benefit COMPO EXPERT. Both

companies will offer a product series of nutrients for cash crops and high

value crops that meet the rising expectations of Chinese farmers in terms of

crop yields and sustainability. For that purpose, Xinyangfeng will establish a

local manufacturing facility in Zhonglin in the Hubei province. The resulting

short transport routes will ensure efficient and environmentally friendly

production.

Bin Huang, the President of Xinyangfeng: "We are pleased with our strategic

partnership with COMPO EXPERT. It combines two outstanding companies that are

an excellent fit for one another. Xinyangfeng's decades of experience and our

extensive distribution network in China are perfectly complemented by the great

technology and production expertise of COMPO EXPERT. Together we are now well

positioned to meet the growing demand of Chinese farmers for modern

fertilizers."

COMPO EXPERT, Europe's leading manufacturer of special fertilizers, offers a

broad portfolio of high-quality innovative fertilizers for commercial use. The

strategic partnership is centered around two products: granular NPK branded as

Blaukorn® and stabilized, granular NPK under the NovaTec® brand. The Chinese

market offers great growth potential especially for high quality and

environmentally friendly fertilizer products with high efficiency. While China

accounts for about ten percent of the world's cropland, the fertilizers used

there represent almost one third of global consumption.

Murphy Qiao, Partner and Head of Asia of the XIO Group, the

London-headquartered owner of COMPO EXPERT: "Since the beginning of 2015 we

have been supporting the management of COMPO EXPERT in the development and

implementation of a value-generating global growth strategy. The company has

expanded its leading position in Europe as well as in Latin and South America.

The strategic partnership with Xinyangfeng is a win-win-cooperation for both

companies. It provides COMPO EXPERT with extended access to the growth market

of China, while Xinyangfeng will significantly expand its production know-how

and product range."

Joseph Pacini, CEO and Partner of XIO Group added: "COMPO EXPERT's strategic

partnership with Xinyangfeng exemplifies XIO Group's strategy to identify and

invest in market-leading and high-performing businesses located across Europe

and North America and to help these companies in capitalizing on untapped

opportunities in fast growing markets, particularly those in Asia."

About COMPO EXPERT

COMPO EXPERT GmbH, with headquarters in Münster in the German region of

Westphalia, is an international company with locations in Europe, North and

South America, Asia and South Africa. The Company produces and sells special

fertilizers and biostimulants for all areas of plant cultivation. COMPO EXPERT

offers a broad range of high quality, innovative special fertilizers for

commercial use. Its product range includes innovative slow-release fertilizers,

special mineral fertilizers, coated fertilizers, nutrient salts, liquid

fertilizers, trace nutrients and soil treatments. With those products, COMPO

EXPERT is a market leader in Europe.

COMPO EXPERT was acquired in 2015 by XIO Group, a global alternative

investments company, and now has approximately 600 employees. For more

information, visit: http://www.compo-expert.com.

About XIO Group

XIO Group is a global alternative investments firm headquartered in London with

more than $3.2 billion of committed capital that employs an international team

of more than 70 professionals. Representing more than 15 nationalities among

its employees and its network of advisors, the firm has operations in the

United Kingdom, Germany, Switzerland, Hong Kong and mainland China. With a

seasoned international investment team that includes professionals with

experience working at many of the world's leading private equity firms, XIO

Group seeks to deploy its capital for global transactions. XIO Group's strategy

is to identify and invest in market-leading businesses located across North

America and Europe and help these companies to capitalize on untapped

opportunities in fast growing markets, particularly in Asia. XIO Group is led

by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

For more information, visit: http://www.xiogroup.com.

About Xinyangfeng

Established in 1982, Hubei Xinyangfeng Fertilizer Co., Ltd. is headquartered in

Jingmen, Hubei Province and Beijing, People's Republic of China. After more

than three decades' development, the Company has an asset of 7 billion Chinese

Yuan in fertilizer main business, and 7,000 employees in total. With a

production capacity of 2.6 million tons phosphate compound fertilizer per year,

the Company has developed into a large scale phosphate chemical company

publicly listed in the Shenzhen Stock Exchange (Stock Code: 000902) and a

State-level high and new technology company, integrating the research,

production and distribution of high density phosphate compound fertilizer and

new-type fertilizers. During the "13th National Five-Year Plan" period, the

Company will stick to the innovation-driven development concept and open

synergy spirit, focus on two major business units of fertilizer and modern

agriculture, further explore two types of key resources from technology and

distribution channels, form four platforms of internationalization, industrial

cooperation, finance and investment, as well as digitalization, so as to

realize a strategic transformation and upgrade of the Company, becoming a

leading modern agricultural solution provider. For more information, visit:

http://www.xinyf.com.

Media Contact

FTI Consulting

Marietta Weiss

Tel.: +49(0)-699-2037-118

marietta.weiss@fticonsulting.com  

Steffi Susan Kim

Tel.: +49(0)-699-2037-115      

steffi.kim@fticonsulting.com

Source: COMPO EXPERT GmbH