BASF Sells Global Phorate Insecticide Product Line to American Vanguard; Product Line Generated Sales of 14 Million Euros in 200
02 November 2005 - 12:45AM
Business Wire
American Vanguard Corporation (AMEX:AVD) and BASF
Aktiengesellschaft, Ludwigshafen, Germany (NYSE:BF) today announced
that BASF sold the global Phorate insecticide product line to AMVAC
Chemical Corporation, a subsidiary of American Vanguard. The
product line consists of the active ingredient Phorate, the
trademarks Thimet(R), Granutox(R) and Geomet(R), the manufacturing
and formulation know-how, registration rights, intellectual
property rights and inventories as well as an exclusive license to
use BASF's patented, closed delivery system, Lock 'N Load(R), in
the US, Canada and Australia for Phorate. Phorate, which generated
sales of approximately EUR 14 million in 2004, was first introduced
in 1954. It is registered in more than 15 countries, with the main
markets in Asia Pacific and the Americas. It is used on
agricultural crops, mainly potatoes, corn, cotton, rice and
sugarcane, to protect against chewing and piercing-sucking insects.
Eric Wintemute, President and CEO of American Vanguard, stated,
"This acquisition is important for American Vanguard on several
levels. It is our largest acquisition to date, and should be a
significant contributor to our sales base, with sales beginning in
the fourth quarter of 2005. Furthermore, Phorate is an attractive
addition to our niche product portfolio, which includes many
different insecticide products. Additionally, we have identified
what we believe are further market opportunities for Phorate. We
continue to execute on our growth strategy of acquiring and
licensing niche product lines from larger companies in our
industry." "For BASF, the divestiture is part of the continuing
process of reviewing the Agricultural Products portfolio. It is
obvious that some products offer limited synergy for BASF and are a
better strategic fit for other, more specialized companies. This is
the case with Phorate and AMVAC," says Mike Heinz, Group Vice
President and Head of Global Strategic Marketing of the BASF
Agricultural Products division, who will be President of the
division from December 1, 2005. Glen Johnson, Senior Vice President
of AMVAC, added, "In the US, Thimet is delivered via the Lock 'N
Load(R) delivery system. We see an opportunity to bridge this
technology with our successful SmartBox(R) delivery system. This
acquisition comes on the heels of our licensing agreement with BASF
for the new corn herbicide, Impact(TM) which we expect to launch in
the spring of 2006." About BASF With sales of EUR 3,354 million in
2004, BASF's Agricultural Products division is a leader in crop
protection and a strong partner to the farming industry providing
well-established and innovative fungicides, insecticides and
herbicides. Farmers use these products and services to improve
yields and quality of agricultural crops. Other uses include public
health, structural/urban pest control, turf and ornamental plants.
BASF aims to turn knowledge rapidly into market success. The vision
of BASF's Agricultural Products division is to be the world's
leading innovator, optimizing agricultural production, improving
nutrition, and thus enhancing the quality of life for a growing
world population. Further information can be found on the web at
www.agro.basf.com. BASF is the world's leading chemical company:
The Chemical Company. Its portfolio ranges from chemicals,
plastics, performance products, agricultural products and fine
chemicals to crude oil and natural gas. As a reliable partner to
virtually all industries, BASF's intelligent solutions and
high-value products help its customers to be more successful. BASF
develops new technologies and uses them to open up additional
market opportunities. It combines economic success with
environmental protection and social responsibility, thus
contributing to a better future. In 2004, BASF had approximately
82,000 employees and posted sales of more than EUR 37 billion. BASF
shares are traded on the stock exchanges in Frankfurt (BAS), London
(BFA), New York (BF) and Zurich (AN). Further information on BASF
is available on the Internet at www.basf.com. About American
Vanguard American Vanguard Corporation is a diversified specialty
and agricultural products company that develops and markets
products for crop protection and management, turf and ornamental
management, and public and animal health. The Company's basic
strategy is to acquire brand name, niche product lines from larger
companies that divest mature products to focus on newly discovered
molecules. During 2005, American Vanguard was recognized as one of
BusinessWeek's Hot Growth Companies (#72), FORTUNE Small Business'
America's 100 Fastest Growing Small Companies (#40) and Forbes' 200
Best Small Companies (#59). 2005 marks the third consecutive year
American Vanguard has been included on these three lists - the only
company to hold this honor. American Vanguard is included on the
Russell 2000(R) and Russell(R) 3000 Indexes. To learn more about
American Vanguard, please reference the Company's web site at
www.american-vanguard.com. American Vanguard, from time to time,
may discuss forward-looking information. Except for the historical
information contained in this release, all forward-looking
statements are estimates by American Vanguard's management and are
subject to various risks and uncertainties that may cause results
to differ from management's current expectations. Such factors
include weather conditions, changes in regulatory policy and other
risks as detailed from time-to-time in American Vanguard's SEC
reports and filings. All forward-looking statements, if any, in
this release represent American Vanguard's judgment as of the date
of this release.
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