BASF and Agway, Inc., Syracuse, N.Y., have reached an agreement under which BASF will acquire CPG Technologies, the FreshSeal(R) post harvest treatment business of Agway, effective January 15.

Financial details of the transaction were not disclosed.

Under the agreement, BASF will acquire inventory, patents, trademarks, product and application technology, and distribution channels for three water-based liquid polymer coatings that extend the shelf life and improve the quality of harvested fruits and vegetables. The FreshSeal products are the only polymer-based fruit and vegetable coating available in the industry. The products will become part of the BASF Human Nutrition product line for the company's Fine Chemicals Division in North America and will be available for customers in Europe, Asia and South America.

"This is a natural extension of the Human Nutrition group's focus on the food market. FreshSeal products help produce growers and packers deliver fruits and vegetables that are fresher and of higher quality to distributors, retailers and consumers," said Stefan Borgas, Group Vice President, Fine Chemicals for BASF in North America.

The use of FreshSeal products also has the potential to lessen controlled atmosphere storage and replace waxes and some types of packaging. Available commercially since 1999, FreshSeal coatings are all authorized by the U.S. Food and Drug Administration (FDA), and are easy to apply.

There are three FreshSeal coatings:

• FreshSeal P for fruits and vegetables with skins that are peeled and discarded, such as avocados, melons, mangos and papayas
• FreshSeal BR for produce requiring a good moisture barrier, including pineapples, bananas, cantaloupes and limes
• FreshSeal CH for fruits and vegetables with consumable skins, such as tomatoes.

About BASF: Helping Make Products Better(TM)
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 $34 billion and more than 89,000 employees worldwide. BASF Corporation is the North American affiliate of BASF AG, Ludwigshafen, Germany. In North America, 2002 sales were approximately $8.2 billion and the company employs approximately 12,000 people.