BASF strengthens its Agricultural Products business

25-Mar-2003

BASF Aktiengesellschaft, Ludwigshafen, Germany, has completed the acquisition of a package of agricultural products purchased from Bayer CropScience AG, Monheim, Germany. The acquisition, which includes the leading new chemistry insecticide fipronil and selected fungicides for seed treatment applications, significantly strengthens BASF's Agricultural Products business.

"This acquisition allows us to considerably enhance our insecticide business, especially in growing and attractive specialty markets. The seed treatment business is also a very good fit with our new fungicides which have excellent potential in this market," said Peter Oakley, member of BASF's Board of Executive Directors and responsible for the Agricultural Products & Nutrition segment.

The total package with sales of EUR500 million in 2001 is valued at EUR1,330 million. Taking into consideration back-licenses granted by BASF to Bayer CropScience for selected non-agricultural uses, the purchase price amounts to EUR1,185 million.

Fipronil is a broad-spectrum insecticide from the new insecticide chemistry class of phenyl pyrazoles. It has an excellent activity against many major insect pests in crop and non-crop markets. The most important uses are soil application and seed treatment in crop and termite control in non-crop markets. Fipronil is currently registered and sold in over 70 countries. The fungicides included in the acquisition are triticonazole, iprodione, prochloraz, pyrimethanil and fluquinconazole for certain uses and regions.

The manufacturing facilities for fipronil, triticonazole, and iprodione, located at Elbeuf, France, and employing about 340 persons are also part of the transaction.

"With this acquisition we close a strategic gap in our insecticides portfolio, strengthen our position in growing market segments, such as seed treatment and non-crop uses, and create market synergies with our current portfolio," says Hans W. Reiners, head of BASF's Agricultural Products division. "BASF's strong commercial presence in all major markets will enable us to rapidly integrate and fully realize the potential value of these products."

While conditions in the agricultural markets continue to be challenging, Reiners sees a promising future for BASF in this market: "With the acquired products and our new market introductions, we have a strong foundation for growth. This is an important step towards achieving our mid-term goal of a 25 percent EBITDA margin."

https://www.chemeurope.com/en/news/21576/basf-strengthens-its-agricultural-products-business.html