Merck KGaA Sells Rodenticides Business to De Sangosse
Strategic move to further improve focus of Life Science Products division
Darmstadt, Germany - Merck KGaA today announced that its affiliate Liphatech S.A. has agreed to sell its global rodent control business to De Sangosse S.A., a French company specializing in plant protection and pest control.
The business, with production sites at Meyzieu, near Lyon (France), Milwaukee, WI (USA) and Pilar, near Buenos Aires (Argentina), achieved a global turnover of EUR 23 million in 2001. It will be sold to De Sangosse, including global rights to the Liphatech name. Both parties agreed not to disclose financial details of the transaction.
Under the terms of the transaction, Liphatech's U.S. rodenticide production site at Milwaukee will be completely transferred to De Sangosse, including all of its 35 U.S. employees. Production in Argentina will be continued on a toll manufacturing basis. As production in France will be moved to De Sangosse headquarters at Pont-du-Casse, production of finished products at Meyzieu will be terminated by the end of 2003. In France, a total workforce of 40 people is affected by the transaction. All french employees will be offered employment by De Sangosse.
"De Sangosse will further develop this interesting business alongside its main line of snail and slug control products," said André Samier, Chief Executive Officer of De Sangosse. "Our dedicated competencies in production, marketing and regulatory expertise will be added to the existing strong fundamentals of the current business."
"Though the rodent control business is healthy with attractive growth perspectives, it does not really fit into our strategic focus," commented Dr Bernd Reckmann, Head of Merck KGaA's Life Science Products division. "The divestment will allow us to further concentrate on the value chain and product needs of the global Life Science and Biotech companies," Reckmann added.
In 2000, the rodenticide world market accounted for EUR 240 million, giving Liphatech a rank within the very first leading companies with a market share of approximately ten per cent.
After completion of the transaction, Merck's current Liphatech subsidiaries will be renamed to their historic name "Nitragin" and continue worldwide business of legume inoculants under that name.
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