Ludwigshafen, Germany
March 24, 2003
Insecticides widen existing
portfolio of proprietary products Important step into seed
treatment business
BASF Aktiengesellschaft,
Ludwigshafen, Germany, has completed the acquisition of a
package of agricultural products purchased from Bayer
CropScience AG, Monheim, Germany. The acquisition, which
includes the leading new chemistry insecticide fipronil and
selected fungicides for seed treatment applications,
significantly strengthens BASF’s Agricultural Products business.
“This acquisition allows us to considerably enhance our
insecticide business, especially in growing and attractive
specialty markets. The seed treatment business is also a very
good fit with our new fungicides which have excellent potential
in this market,” said Peter Oakley, member of BASF’s Board of
Executive Directors and responsible for the Agricultural
Products & Nutrition segment.
The total package with sales of €500 million in 2001 is valued
at €1,330 million. Taking into consideration back-licenses
granted by BASF to Bayer CropScience for selected
non-agricultural uses, the purchase price amounts to €1,185
million.
Fipronil is a broad-spectrum insecticide from the new
insecticide chemistry class of phenyl pyrazoles. It has an
excellent activity against many major insect pests in crop and
non-crop markets. The most important uses are soil application
and seed treatment in crop and termite control in non-crop
markets. Fipronil is currently registered and sold in over 70
countries. The fungicides included in the acquisition are
triticonazole, iprodione, prochloraz, pyrimethanil and
fluquinconazole for certain uses and regions.
The manufacturing facilities for fipronil, triticonazole, and
iprodione, located at Elbeuf, France, and employing about 340
persons are also part of the transaction.
“With this acquisition we close a strategic gap in our
insecticides portfolio, strengthen our position in growing
market segments, such as seed treatment and non-crop uses, and
create market synergies with our current portfolio,” says Hans
W. Reiners, head of BASF’s Agricultural Products division.
“BASF’s strong commercial presence in all major markets will
enable us to rapidly integrate and fully realize the potential
value of these products.”
While conditions in the agricultural markets continue to be
challenging, Reiners sees a promising future for BASF in this
market: “With the acquired products and our new market
introductions, we have a strong foundation for growth. This is
an important step towards achieving our mid-term goal of a 25
percent EBITDA margin.”
With sales of €3 billion in
2002, BASF’s Agricultural Products division, headquartered in
Mount Olive, New Jersey, USA, is a leading supplier and marketer
of herbicides, fungicides and insecticides. Based on its broad
experience in R&D, manufacturing, marketing and sales, 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.
BASF is the world’s leading chemical company, offering its
customers a range of high-performance products, including
chemicals, plastics, performance products, agricultural
products, fine chemicals as well as crude oil and natural gas.
Its distinctive approach to integration, known in German as
“Verbund,” is its strength. It enables BASF to achieve cost
leadership and gives the company a competitive advantage. BASF
conducts its business in accordance with the principles of
sustainable development. In 2002, BASF had sales of €32 billion
(circa $34 billion) and over 89,000 employees worldwide. Further
information on BASF is available on the Internet at
www.basf.com.
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