Bayer CropScience Acquires AgraQuest
Nearly $500 million deal will enable Bayer CropScience to build a leading technology platform for green products and strengthen its fruits and vegetables business.
July 5, 2012
Bayer CropScience has signed an agreement to purchase AgraQuest Inc. for a purchase price of $425 million plus milestone payments. AgraQuest, headquartered in Davis, CA, is a global supplier of innovative biological pest management solutions based on natural microorganisms. This acquisition will enable Bayer CropScience to build a leading technology platform for green products and to strengthen its strategically important fruits and vegetables business, while also opening new opportunities in other crops and markets. Green products control a broad spectrum of pests and diseases and offer farmers integrated pest management programs to minimize development of resistance and maximize crop yields. The acquisition is subject to approval by the relevant authorities.
“The growing fruits and vegetables market, which today accounts for more than 25% of our sales, is of strategic importance for us. With the acquisition of AgraQuest we are underlining our growth ambitions,” said Sandra Peterson, CEO of Bayer CropScience.
The tailor-made portfolio and promising R&D pipeline of AgraQuest will help Bayer CropScience to build a broad-based technology platform to bring a new generation of innovative products to the market. Furthermore, this acquisition will help to optimally use R&D, manufacturing, and market synergies creating value for both Bayer CropScience and its customers.
AgraQuest’s current product portfolio includes well-established product brands such as Serenade, Rhapsody, Sonata and Ballad fungicides and Requiem insecticides.
Bayer CropScience will leverage AgraQuest's technology platform and its promising pipeline of new biological control agents. Several new pipeline products, which include acaracides, fungicides and nematicides, among others, are under development, and have undergone successful early field evaluations. Through the acquisition Bayer CropScience will integrate AgraQuest’s state-of-the-art biopesticides production facility in Tlaxcala, Mexico, as well as the company’s R&D site in Davis.
AgraQuest employs a total staff of approximately 250 full-time employees.
Source: Bayer CropScience