Diversified Mergers & Acquisitions of Agrochemical Enterprises in 2013

 

M&A can be normally divided into 3 sorts: horizontal, vertical and diversified, which is no exception to agrochemical enterprises. Nowadays there have been distinguished formations of global agrochemical enterprises, where the gap between each formation is becoming bigger and bigger, i.e. the stronger is getting stronger and the weaker is getting weaker, who is eliminated by the market, as seen everywhere in each industry. So it is right in saying that horizontal merge aiming at business expansion has almost come to an end, of course there may still be such mergers, but may not at a large scale. The vertical merge targeting at product chain extension at reduced cost has been always a favorite of agrochemical enterprises, especially downstream extension-oriented merger and acquisition, because after all the ex-works product goes to consumers through various linkages where best profit is generated. As a business practitioner, besides its dedication to growth of business, expected reduction of risk and cost, an enterprise also needs to keep an eye on the latest development and future prospects of its business. This is particularly important when farming technology is changing every single day, the past dedication only to conventional agro products has appeared to be out of date. Therefore there is nothing better than the diversified merger and acquisition of an existing industry player, which is a most ideal approach to a brand new sector. 

 

In 2013, there were no frequent mergers by world industry leaders. According to the statistics of AgroPages, DuPont and Dow AgroSciences did not conduct any mergers in the agrochemical industry in 2013. The other 4 main players had mergers mostly with biotechnical or seed companies, as stated at the beginning of the essay. Multinationals have got more acute sense and sharpened insight toward the business trend, being able to keep a close pace with industrial development so as to be adapted to the business trend in a timely manner. A highlight of merger by multinationals in 2013 is the merge of Monsanto and Climate Corporation involving considerable amount of investment, where Monsanto’s R&D capacity integrates with the strength of agricultural analysis and risk management of Climate Corporation. Via the integration, data are converted to operable farmland management recommendations which bring farmers a maximized benefit. The huge merger by Monsanto can be deemed to be a classic case where an agrochemical enterprise brings agriculture into a new epoch via data analysis. 

 

This essay particularly gives a list of agrochemical business-oriented service agencies, such as contract research institutions and consultancy services who participated in agrochemicals-related mergers. The world largest agro science testing Eurofins conducted a series of mergers in Australia and New Zealand through which its market position in the Pacific is consolidated; in the meantime Eurofins merged with its close partner at present time – Entelechon.

 

Syngenta 

• acquires MayAgro Seed’s greenhouse vegetable breeding programs covering cucumber, pepper and tomato 

• acquires MRI, a leading producer of white corn seed in Zambia 

• completed tender offer for Devgen 

• intend to acquire under 26% stake of Kaveri Seeds in India 

• completes acquisition of Prophyta GmbH 

• purchases the start-up company FN Semillas based in Argentina 
 

BASF 

• acquires specialized enzyme biotechnology company Verenium 
 

• acquired Duke University agrobiotech spinoff - Grassroots Biotechnology 

• acquired parts of Dieckmann Seeds European seed business 

• acquired plant trait developer Rosetta Green. 

• acquired the Climate Corporation for approximately $930 million 

• increased its shareholding in InterGrain to 26% from 19.9% 

• purchased assets of Agradis for developing biological products

 

• Makhteshim Agan acquired Slovakia company AGROVITA 

• Makhteshim Agan acquired Magan Agrochemicals Serbia 

• Makhteshim-Agan planning a tender offer via its controlled Dutch company - Celsius Property B. V. to acquire part of Sanonda’s B Share 

• Makhteshim Agan acquires stake in ChileAgro 

• Nufarm Americas acquired Cleary Chemical Corporation 

• FMC acquired exclusive rights to a patented, broad-spectrum crop protection product from Bayer CropScience 
 

Services Companies 

• Eurofins acquired an 81% majority stake in Agrisearch Services and its wholly owned subsidiaries Agrisearch Analytical and Agrivet Services 

• Eurofins acquired gene synthesis firm Entelechon of Germany 

• Evans Analytical Group acquired Wildlife International 

• GfK acquired select assets from Context Network
 

Seed Companies 

• Beck’s Hybrids purchased the Brown Seed Enterprises seed processing facility 

• DLF-TRIFOLIUM A/S acquired Pickseed Canada and Pickseed USA 

• Hartung Brothers acquires the Syngenta’s seed production and supply facility in Iowa 

• Innova Seeds acquired the Niagara brand and business unit from HM-Clause 

• Limagrain completed the acquisition of Eureka Seeds 

• Nuseed acquired HSR Seeds’ sorghum hybrid assets 

• Nuseed do Brasil acquired 51% of the equity in Atlantica Sementes which specializing in sorghum and sunflower seeds 

• Rasi Seeds acquired the hybrid corn seed business of Bayer BioScience in India 

• S&W Seed Company acquired 100% of Seed Genetics International 

• Sakata Seed acquires a stake in Genetwister Technologies 

• The J.R. Simplot Company acquired Scootney Springs Seed 

• Thunder Seed acquired Prairie Pacific Seeds 

• Verdesian Life Sciences acquired INTX Microbials 

• Verdesian Life Sciences acquired Plant Syence 

• Vilmorin acquired Bisco Biosciences and integrated the activities of BISCO, ATASH and LIMAGRAIN into one single operation in India 

• Vilmorin acquired Link Seed of South Africa
 

• Belchim acquired all the rights and assets of Italian company ISEM’s fungicides, valifenalate and IR 8854 

• BRANDT completed acquisition of Monterey AgResources 

• Coromandel Agrico buys the agro formulation unit of Punjab Chemicals and Crop Protection 

• ISEM sold all the rights and assets related to its proprietary herbicide orthosulfamuron to Nihon Nohyaku 

• Koppert acquired Welte-Nützlinge 

• MGK acquired the Environmental Science Division of Valent BioSciences 

• NewLeaf Symbiotics acquired Intuitive Genomics 

• Novozymes acquired TJ Technologies 

• Scotts Miracle-Gro acquired Bell Labs’ rodent control technology business 

• Solvay acquires specialty chemical assets of Erca Quimica 

• Terminix acquired assets of Care Pest & Wildlife Control 

• Terminix acquired Magical Pest Control and entered into Canadian pest control market 

• Terminix acquired McCauley Brothers Termite and Pest Services 

• The French DE SANGOSSE Group taken shares in the British Company Alpha Biopesticides 

• Wilbur-Ellis acquired Blue River Ag Supply 

• Wilbur-Ellis acquired Chester Farm Service 

• Wilbur-Ellis acquired S&S agricultural supply in US

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