AMVAC closes its acquisition of three products from Adama

Date:06-07-2017

American Vanguard Corporation (NYSE:AVD), recently announced that its wholly owned subsidiary AMVAC Chemical Corporation has completed the acquisition of three crop protection product lines – abamectin, chlorothalonil and paraquat – from Adama Agricultural Solutions Ltd., which is part of the China National Chemical Corporation (“ChemChina”) group. As reported on April 5, 2017, these product lines were sold pursuant to the terms of a consent decree from the FTC, as a condition for that agency’s approval of the ChemChina/Syngenta merger. The acquisition includes the trademarks, product registrations, registration data, and commercial information that relate to the marketing and sale of these three product lines in the crop protection market within the United States. Financial details of the transaction were not disclosed.

Eric Wintemute, Chairman & CEO of American Vanguard commented: “Adding these proven, branded product lines will diversify and balance our crop and geographical segments, while adding sales opportunities for our channel partners and continued growth for our business. In addition, the technical registrations we are acquiring will provide us with a foundation of technologies upon which we can build additional premix value-added products. AMVAC will immediately begin the transition of manufacturing, selling and servicing these products.”

Mr. Wintemute concluded: “We expect that these products will increase full year domestic sales by 10 to 15%. Further, we believe that our sales, marketing and product development capabilities will enable us to maintain all existing business and subsequently expand our sales of these product lines in the years ahead.”