When you have success, people notice. BASF apparently recognizes the growth and success of Becker Underwood.
This morning BASF announced that they have purchased entire global portfolio of Becker Underwood for 1.02 billion dollars.
The Press Release states:
“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,” said Dr. Andreas Kreimeyer, Research Executive Director and Member of BASF’s Board of Executive Directors responsible for the Agricultural Solutions segment.
Becker Underwood is expected to achieve sales of $240 million (€185 million) for fiscal year 2012, ending on September 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.”
“Over the past years, Becker Underwood has established itself as an innovative provider of solutions for agriculture,” emphasized Dr. Peter Innes, Chief Executive Officer of Becker Underwood. “Strengthened by the power of BASF’s research capabilities as well as its existing portfolio of solutions, we will be able to develop and globally market new types of solutions for growers.”
As the major biotech, life science companies see the bright future of biologicals, acquisition is one of the ways of entry into the space. When RealAgriculture.com interviewed Becker Underwood CEO, Peter Innes in the spring he discussed how strong the future of biologicals is for farmers around the world.
Rumors around this deal were very quiet which would lead some to speculate BASF came to the table and not Becker
Underwood shopping the business. In terms of the pulse market it makes a lot of sense for BASF. With the Clearfield lentil program, strong fungicide portfolio and now inoculants, BASF is now the pulse crop technology leader.