Isagro, Chemtura Form Strategic R&D Alliance
Isagro S.p.A. and Chemtura AgroSolutions, a business unit of Chemtura Corp., have finalized a joint venture creating a strategic alliance.
January 31, 2011
This alliance is based on the following main points:
- equal sharing of the investments in innovative research focused on discovering new active ingredients;
- establishment of a new company, named ISEM S.r.l., having an equity value of â‚¬ 40 million and equally owned (50:50) by Isagro and Chemtura. To this end, Isagro has contributed to ISEM the ongoing branch of activity (assets, liabilities, commercial payables and receivables, customers portfolio, personnel and contracts) composed of the commercially registered herbicide Orthosulfamuron and fungicide Valifenalate, as well as the intellectual property related to two new active ingredients, poised for development and commercialization.
This alliance will allow:
- the sharing of investments and risks associated with the activities in innovative research;
- the acceleration of the development and commercialization of the conferred active ingredients as well as of the new molecules originated by the joint discovery efforts.
The transfer of the participation in ISEM took place against the payment of â‚¬ 20 million, which has been made.
Isagro, which will use the proceeds from the transaction mainly to strengthen its financial position by reducing its financial exposure and to finance core business operations, will communicate the effects of the agreement on cash flows and income statements through a disclosure in conformity with Annex 3B, Art. 71 of the Italian Issuers' Regulation.
Giorgio Basile, Isagro president and CEO, stated: "This alliance is consistent with our strategy to focus on our core business, which is based on our historical competences in researching and developing new molecules and promoting them in the marketplace on a global basis. To this end, Chemtura is an ideal partner because of its deep culture and long experience in developing and marketing agrochemical specialties, as well as for the important synergies between the two companies."
Chet Cross, executive vice president of Chemtura, stated: "This alliance is the next step in our commitment to growing the Chemtura agrochemicals business. We started last year with the re-branding of our agrochemicals division to Chemtura AgroSolutions, and today's step reinforces our commitment to provide solutions to our customers and business partners around the globe. This joint venture with Isagro, which has a proven track record of success, is a key step in our commitment to investing in new product discovery and development and we are confident that this alliance will help accelerate our ability to offer new solutions to our customers worldwide for many years to come."