Arysta enters into an agreement to acquire Monsanto-Moviagro ag-chem assets in Chile
Reorganizes South American management to capture new opportunities
TOKYO, October 25 - Arysta LifeScience Corporation's global
growth strategy took another step forward today, with an intended
acquisition that adds product depth and distribution rights in the key
South American market.
The company announced today that it has entered into an agreement to
acquire the main agricultural chemical assets of Monsanto's Chile-based
Moviagro subsidiary. The transaction includes the Moviagro name. The
resulting company will be known as Arysta-Moviagro.
Monsanto and Arysta also agreed to enter into a supply agreement for formulated Roundup® agricultural herbicides as well as Monsanto's Lasso® Micro-Tech®, Latitude®, and Guardian® herbicides for sale in Chile; including an exclusive license to the Monsanto trademarks for these herbicides in Chile.
A fully-owned division of Monsanto since 2001, the Monsanto-Moviagro
agricultural chemical business is Chile’s fifth largest distributor of
agricultural chemicals. This division holds a 12% market share in
Chile, on sales of US $22 million (2003).
Dr. Christopher Richards, Arysta's President and CEO, describes the
Moviagro acquisition as the latest expression of Arysta’s long-term
strategy for growth. With it, Arysta gains highly capable employees and
a proven distribution network for both licensed and Arysta-branded crop
protection products.
"Emerging markets are an important focus of our strategy, and we're
particularly committed to growing our business in South America," says
Dr. Richards. "In the Chilean market, Moviagro is known for its
innovative agronomic technology, value-added services and
knowledgeable, dedicated employees. We consider Chile to be an ideal
location from which to expand South American distribution, market share
and the Arysta brand. Arysta has a 3% market share in South America,
which we intend to increase to 5% within five years."
Arysta's South American strategy will be supported by a reorganized
South American business unit. The newly formed unit, led by Yukio Arai
and based in Sao Paulo, Brazil, will execute region-based management of
Arysta’s business strategy. Arysta already owns distribution rights in
several South American countries, including Hokko do Brasil in Brazil,
Coljap in Colombia, Callipar in Paraguay, Calliope-Bolivia in Bolivia,
Vimagro in Venezuela and Arvesta Mexico.
Says Dr. Richards: "We are particularly delighted to welcome the
Moviagro team to the Arysta family. With their support we look forward
to a smooth transition, maintaining Moviagro’s excellent customer
relationships."
"We're pleased to be working with Arysta and that the
Arysta-Moviagro business will continue to serve Chilean farmers while
allowing us to focus our energy on our core business areas," said Brett
D. Begemann, Monsanto's Executive Vice president of International
Operations.
Headquartered in Tokyo, Japan, Arysta is an entrepreneurial provider
of crop protection and life science products worldwide. The company is
growing by building a world class business in the development,
marketing and distribution of respected crop protection brands and an
intimate understanding of the needs of global producers. For further
information about Arysta LifeScience Corporation, see:
www.arystalifescience.com.
For more information on Arysta LifeScience Corporation, please contact:
For more information on Arysta-Moviagro, please contact:
For more information on Monsanto, please contact:
Monsanto Company is a leading global provider of technology-based
solutions and agricultural products that improve farm productivity and
food quality. For more information on Monsanto, see: www.monsanto.com.
Note to editor: Roundup, Lasso, Micro-Tech, Latitude and Guardian are trademarks owned by Monsanto Technology, LLC
Elin Miller
Phone +1 415 536 3460
Fax +1 415 283 9883 Email: emiller@arvesta.com
Yukio Arai
Phone +011 55 11 3054 5031
Email: arai@hokko.com.br
Bryan Hurley
Phone +1 314 694 8387