BASF to Buy Becker Underwood for $1.02 Billion

By: |

Markus Heldt, BASF

BASF on Sept. 20 said it would acquire U.S.-based seed treatment company Becker Underwood for $1.02 billion.

Becker is headquartered in Ames, Iowa, and is one of the leading global providers of technologies for biological seed treatment, seed treatment colors and polymers, as well as products in the areas of biological crop protection, turf and horticulture, animal nutrition and landscape colorants and coatings. The company has 10 production sites worldwide and 479 employees. BASF came to an agreement with Norwest Equity Partners (NEP) to acquire Becker Underwood which has been a portfolio company of NEP since 2004. The purchase is subject to approval by the responsible authorities and legal closing of the transaction is expected by the end of 2012.

“We are impressed with Becker Underwood’s ability to translate growers’ needs into innovative, tailor-made solutions that can promote higher yields while conserving resources. Becker Underwood is to become part of BASF and we are excited that together with our new colleagues we can continue expanding our competencies. Particularly in the rapidly-growing seed treatment market, we will be able to develop innovative solutions for agriculture,” Dr. Andreas Kreimeyer, Research Executive Director and member of the BASF board responsible for the Agricultural Solutions segment, said in a statement.

Becker Underwood is expected to achieve sales of $240 million for fiscal year 2012, ending on Sept. 30. As part of the acquisition, BASF’s Crop Protection division will create a strategic global business unit called Functional Crop Care. The unit will merge BASF’s existing research, development and marketing activities in the areas of seed treatment, biological crop protection, plant health, as well as water and resource management with those of Becker Underwood. Becker Underwood’s animal nutrition business will be integrated into BASF’s Nutrition & Health division.

“Becker Underwood has a strong position in North America. We will continue to expand this core business as we expand globally. Together we can sustainably create value for our customers,” said Markus Heldt, President of BASF’s Crop Protection division. “We are thrilled at the prospect of working with the highly-qualified employees at Becker Underwood as we continue to develop our combined businesses.”

Upon receiving the necessary legal approvals, the majority of Becker Underwood’s business will be integrated into BASF’s Crop Protection division. In 2011, the division recorded sales of around €4.2 billion and is expecting another top year in 2012 as well. With its products and services, BASF helps growers to improve their yields and the quality of their products.

Source: BASF; edited by Managing Editor Jaclyn Sindrich

Topics: ,

Crop Inputs

Americas

H.J. Baker Shows Commitment to Growth In Latin America With New Hire

Manuel Zavala has more than 25 years in the agricultural business and sales of nutritional and crop protection products.

Americas

Nufarm U.S. Promotes Rob Schwehr To Vice President of Innovation & Regulatory Affairs for Nufarm Americas

Schwehr will oversee product development and interactions with governmental agencies which regulate Nufarm products.

Crop Inputs

Bayer’s Martin Dawkins to Becomes ECPA Acting President

Dawkins and the ECPA will continue to demonstrate the crop protection industry’s commitment to sustainable and productive agriculture.

Crop Inputs

Nihon Nohyaku to Acquire Stake in Hyderabad Chemical

The transaction is expected to close at the end of January 2015.

Americas

The Mosaic Company Completes Acquisition of Archer Daniels Midland’s Fertilizer Distribution Business

Mosaic's distribution capacity in the region is expected to increase from approximately 4 million tonnes per year to 6 million tonnes.

Crop Inputs

Bayer CropScience’s Sonata Fungicide Available For Broadacre Crops

With the label transition from Ballad Plus, Sonata can now be used to protect against diseases in broadacre crops in registered states.

China

Reports Suggest China Approves Syngenta’s Viptera Corn

Chinese authorities have informed some agriculture industry officials the government has approved U.S. imports of a type of genetically modified

Americas

Marrone Bio Innovations’ Regalia Maxx Biofungicide Receives Registration in Brazil

First approved plant extract-based fungicide in Brazil brings growers new solution for protecting against disease, which can result in higher quality and yields.

Crop Inputs

Slideshow: FCI Global Sourcing Summit

Sourcing is of concern to buyers around the world. This Global Sourcing Summit provides attendees an opportunity to address unprecedented challenges and learn about solutions from some of the most innovative companies in the industry.

Africa

Zaklady Chemiczne Police to Build Phosphoric Acid Plant in Senegal

The new plant is the next step in ZChP's plan to move to full fertilizer production in Senegal and set up a fertilizer distribution center for West Africa.

China

Isagro and Rotam Enter License, Develpment, Distribution and Supply Agreement

Rotam will exclusively purchase all of its requirements of Isagro products and active ingredients directly from Isagro.

Crop Inputs

Eden Research Signs Agreement with Sumi Agro France for Grape Protection Products

The agreement follows similar deals that Eden signed with Sipcam Italia Spa and Sipcam Iberia to sell 3AEY in Italy and Spain, respectively.

Americas

Monsanto Next-Generation Trait Technology Closer to Commercial Launch

The USDA considered nearly 5,000 comments submitted by farmers, academic and scientific experts and other key stakeholders before releasing its final Environmental Impact Statement.

Crop Inputs

The 25th Annual Environmental Respect Awards: Call For Entries

Around the world each day, thousands of businesses work alongside farmers, providing them with the products they need to produce healthy, abundant food in a way that helps protect the Earth’s natural resources. Winners of the Environmental Respect Awards program have shown what environmental stewardship is all about.

Crop Inputs

Incotec Opens New Seed Enhancement Facility in Argentina

Incotec will focus on the production and sale of sophisticated coatings for large acre crops to the local seed industry.

Crop Inputs

Gamma-cyhalothrin gains EU approval

Cheminova's proprietary pyrethroid product gamma-cyhalothrin is sold under the trade names Nexide, Vantex and Cooper.

Crop Inputs

Brandt Expands Distribution of Verdesian Products

Brandt Sterics have a strong following in the west and product demand is continuing to expand south and east.

Crop Inputs

EPA Approves Bayer CropScience’s Registration Application for ILeVO

Soybean growers across the country have a new tool to help protect their crops from the fungus that causes Soybean Sudden Death Syndrome (SDS) and nematodes, specifically the Soybean Cyst Nematode.

China

China Supply Update

Manufacturers continue to build new capacity to replace shuddered companies.

Latest News

Americas

H.J. Baker Shows Commitment to Growth In Latin America With New Hire

Manuel Zavala has more than 25 years in the agricultural business and sales of nutritional and crop protection products.

Americas

Nufarm U.S. Promotes Rob Schwehr To Vice President of Innovation & Regulatory Affairs for Nufarm Americas

Schwehr will oversee product development and interactions with governmental agencies which regulate Nufarm products.

Crop Inputs

Bayer’s Martin Dawkins to Becomes ECPA Acting President

Dawkins and the ECPA will continue to demonstrate the crop protection industry’s commitment to sustainable and productive agriculture.

Crop Inputs

Nihon Nohyaku to Acquire Stake in Hyderabad Chemical

The transaction is expected to close at the end of January 2015.

Americas

The Mosaic Company Completes Acquisition of Archer Daniels Midland’s Fertilizer Distribution Business

Mosaic's distribution capacity in the region is expected to increase from approximately 4 million tonnes per year to 6 million tonnes.