Arysta LifeScience Corporation to Acquire GRUPO BIOQUIMICO MEXICANO, S.A. de C.V. (GBM)
Tokyo (06 Sept. 2007) ― Arysta LifeScience Corporation today
announced it signed a definitive agreement to acquire Grupo Bioquímico
Mexicano, S.A. de C.V. (GBM), the leading Mexican manufacturer and
marketer of inputs for the fruit and vegetable market. The acquisition
of GBM increases the overall presence of Arysta LifeScience in the
high-value fruit and vegetable crop market, especially in Mexico, but
also in Central and South America and globally. GBM’s 2006 sales were
approximately US$40 million. The transaction, which is pending approval
by regulatory authorities, includes GBM and its subsidiaries,
affiliated real estate and employee service companies, as well as its
formulation and manufacturing facilities in Ramos Arizpe, Coahuila,
Mexico.
“GBM has focused on innovative high-value products in the growing
horticulture market segment,” said Chris Richards, president and CEO,
Arysta LifeScience. “By combining the global strength of Arysta
LifeScience with GBM’s outstanding product line and marketing
expertise, growers in Mexico, Central and South America and other
targeted regions around the world will have access to new, innovative
products and services that will help them manage their businesses more
effectively. This acquisition is an important step in the development
of the Arysta LifeScience global business in horticulture, which is one
of our key focus markets.”
The GBM product portfolio is focused on enhancing crop yield and
quality in the high-value horticulture market and consists of plant
growth regulators, foliar fertilizers, nutrition enhancers and crop
protection products. GBM primarily sells its products in Mexico,
Central America and South America. In Mexico, GBM will significantly
expand the Arysta LifeScience crop protection business. In Central
America, South America and other regions around the world, Arysta
LifeScience intends to leverage its marketing and distribution presence
to accelerate the growth of GBM’s products in key horticultural
markets.
“In order for our company to continue to grow, we wanted to find a
business partner with the resources to expand the market for our
products,” says Cesar H. Cantú Benavides, board president, GBM. “In
Arysta LifeScience, we will have a partner that has a significant
global presence and a business culture very similar to ours that places
the highest priority on customers and employees.”
Fruit and Vegetable Market Evolving, Growing
While traditional crop protection products, such as pesticides and
herbicides, will continue to play a critical role, products that
enhance plant quality and health are becoming increasingly important.
High-value fruits and vegetables are a significant and expanding market
for the crop protection industry, representing approximately US$8
billion in sales in 2006, and growing faster than the overall crop
protection market. In addition, growers are becoming more sophisticated
in their production methods in order to keep pace with consumer-led
demand for high-quality produce.
“We have been impressed with GBM’s strategic approach to sales and
marketing, as well as the quality and efficacy of its product line,”
said Richards. “Our intention is to maintain the integrity of GBM’s
culture and management team and to build upon its strengths. GBM’s
plant growth regulators, foliar fertilizers, nutrition enhancers and
crop protection products will complement the existing Arysta
LifeScience crop protection portfolio, particularly in high-value crops
such as potatoes, tomatoes, cucurbits, peppers and bananas.”
Arysta LifeScience will continue operations at GBM’s Saltillo,
Coahuila, Mexico, headquarters as well as the Arysta LifeScience
regional headquarters in Mexico City. “We will work to ensure that
customers of both companies experience no change in the quality of
supply and service they have come to expect,” said Richards.
Both companies have agreed not to disclose the financial details of the transaction.
About GBM
GBM is the Mexican market leader in supplying inputs to fruit and
vegetable growers. With headquarters in Saltillo, Coahuila, Mexico, GBM
specializes in plant growth regulators, nutrition enhancers, foliar
fertilizers and crop protection products. The company was founded in
1974 by Cesar H. Cantú Benavides, and has grown to 226 full-time
employees, including 51 Mexican sales positions. GBM’s sales efforts
are focused in Mexico, Central America and South America, with a small
export business to Europe. The company also distributes third-party
agrochemical products, both to distributors and through its retail
operation business, Promotora, in Northern Mexico. More information on
the company is available at: www.gbm.com.
Contact:
Linda Frerichs
Global Communications Head
Arysta LifeScience North America Corporation
Tel: +1-919-678-4948
Email: linda.frerichs@arystalifescience.com