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®,
Granutox® and Geomet®, 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®, 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® delivery system. We see an opportunity
to bridge this technology with our successful SmartBox®
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."
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.
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).
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® and Russell® 3000 Indexes.