Arysta LifeScience To Buy Major Assets of Micro Flo Company From BASF
CARY, N.C./FLORHAM PARK, N.J., March 17, 2006 – Arysta
LifeScience North America Corporation and BASF Corporation today
announced that they have reached final agreement on the acquisition of
major assets of Micro Flo Company LLC, Memphis, Tenn., a wholly owned
subsidiary of BASF Corporation, Florham Park, NJ. The acquisition will
significantly broaden the scope of Arysta LifeScience’s North American
sales operations and create a strategic position in the U.S. crop
protection segment. Closing of the transaction is expected by the end
of the first quarter 2006 pending customary regulatory approvals. Both
companies agreed not to disclose financial details of the transaction.
Micro Flo, with headquarters in Memphis, Tenn., and a formulation
site in Sparks, Ga., is a leading manufacturer and distributor of
off-patent crop protection chemicals and offers a variety of
manufacturing and distribution services. This includes wholesale
distributorships for fungicides, herbicides, insecticides, and plant
growth regulating agents. Micro Flo has relationships with the major
U.S.-based agricultural distribution networks.
Under the agreement, Arysta LifeScience North America Corporation
will acquire the commercial business of Micro Flo, including a
portfolio of active ingredients and registrations, the Micro Flo
trademark, patents and the development laboratory located in Sparks.
BASF will continue to own and operate the formulation production
facility in Sparks. Arysta LifeScience will be an important customer
for BASF, and long-term agreements will ensure continuity for the
supply of the Micro Flo products sourced from BASF. With the exception
of the employees at the Sparks manufacturing site who will remain with
BASF, all Micro Flo personnel will be offered equivalent positions with
Arysta LifeScience, including the development laboratory staff at the
Sparks facility.
Dr. Christopher Richards, Arysta LifeScience president and CEO, said
the acquisition is another key element of the company’s long-term
growth strategy. "With this acquisition, Arysta LifeScience gains a
solid range of products, a proven U.S. distribution network and a
capable and experienced sales force with excellent customer
relationships. Micro Flo is highly regarded for its portfolio of
products and its customer service focus," Richards said. "Adding Micro
Flo’s operations to our existing presence in North America will give
Arysta LifeScience a substantially stronger platform for future growth
in the region."
"We are proud to welcome the Micro Flo team to the Arysta
LifeScience family," said Bill Lewis, Regional Head of Arysta
LifeScience North America. “Micro Flo’s strength in off-patent products
complements our existing portfolio of strong proprietary, off-patent
and third-party products. This combination will provide a compelling
product range that will meet the needs of all our customers."
The divestiture is part of BASF Agricultural Products division’s
strategy of continuously evaluating its product portfolio and its asset
structure. “As a leader in innovation, we have identified some products
and assets that offer limited synergy for us, but are clearly a better
strategic fit for a specialized company, such as the Micro Flo business
with Arysta," said Mike Heinz, president of BASF’s Agricultural
Products division. “I’m convinced that the transition will be smooth.
It will benefit our customers in the North American agricultural
industry by enabling us to better focus our resources on bringing
innovation to that market."
With sales of around four billion Dollars (€3,298 million) in 2005,
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 crop yields and crop quality.
Other uses include public health, structural/urban pest control, turf
and ornamental plants, vegetation management, and forestry. 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
system 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 2005, BASF had approximately 81,000 employees
and posted sales of more than €42.7 billion (approximately $50.4
billion). Further information on BASF is available on the Internet at www.basf.com.
Headquartered in Tokyo, Japan, Arysta LifeScience is the world’s
largest privately held crop protection and life science company with
2005 revenues of ¥115.7 billion (US$1 billion). An entrepreneurial
provider of crop protection and life science products in more than 125
countries worldwide, Arysta LifeScience specializes in the marketing
and distribution of respected crop protection brands and life science
products in harmony with the needs of global producers. More
information on the company is available at: www.arystalifescience.com
For further information, please contact:
BASF
Bernd Gerling
BASF Agricultural Products North America
Phone: 1-919-547-2757 e-mail: stephem1@basf.com
BASF Agricultural Products Communications
Phone : +49-621-60-28655
e-mail: bernd.gerling@basf.com
Mark Stephenson
Arysta LifeScience
Donna Uchida
Phone : 1-415-309-9637
e-mail: donna.uchida@arystalifescience.com