Maker of Everest herbicide bought | Deal reflects growing interest in biological products
An aggressive new player in the crop protection industry has acquired Arysta Life Science, the marketer of Everest herbicide and other insecticides, fungicides and biostimulants.
Platform Specialty Products announced in October that it had bought Arysta for $3.51 billion so it could offer “total crop solutions” to growers around the globe.
“Bringing Arysta under the Platform umbrella will create a broad agrochemicals (company) that is uniquely positioned to provide farmers, globally, with a full suite of products to address their product and geography specific needs,” said Daniel Leever, Platform’s chief executive officer.
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In a conference call announcing the deal, Leever said Arysta’s leading position in agriculture biologicals was a critical piece of the deal.
“Over the last few years … Arysta has been focused on two things,” said Wayne Hewett, Arysta chief executive officer.
“First, we have enhanced the differentiation and globalization of our value added portfolio. Second, we have heavily invested in developing a strong bio-solutions portfolio.”
The Arysta deal is part of a broader trend in the crop science industry, in which companies are investing heavily in agricultural biologicals:
- Bayer spent US$425 million in 2012 to buy AgraQuest, a supplier of biological pest management products.
- BASF bought Becker Underwood in 2012. It makes biological plant health products, including seed treatments and inoculants.
- Monsanto teamed up last fall with Novozymes, a biotech firm that produces inoculants and enzymes, to develop biological products for the crop protection market.
According to Monsanto’s website, agricultural biologicals is an “umbrella term for microbials, plant extracts, beneficial insects and other material … (that) increase crop health and productivity.”
Microbials, one of the most promising areas within the field, are derived from naturally occurring micro-organisms such as bacteria and fungi. Inoculants, which help plants fix nitrogen, are one example.
“The same bacteria help aid our bodies in digestion and maintain our immune system, help plants digest nutrients, enhance root growth and protect them against disease, heat, flooding and drought,” Robb Fraley, Monsanto’s chief technology officer, said in a company video.
This year, Monsanto and Novozymes conducted 170,000 plot trials on ag biologicals at 70 locations in the United States. They expect to double the number of trials next year.
Hewett said Platform Specialty Products is well positioned to compete in this market because Arysta has also invested in ag biologicals.
“Platform will have leadership positions in bio-solutions and seed treatment.”
The Arysta purchase represents Platform’s third agrochemical acquisition in the last year. Platform, partly owned by American investor Bill Ackman, bought Chemtura AgroSolutions for $1 billion in the spring. It also bought Agriphar, a Belgian crop science company, for $300 million.
Hewett said global fundamentals are pulling investors toward crop science. The world’s population is growing rapidly and people are becoming wealthier, but arable land is limited. Farmers will need crop protection products to increase their yields and satisfy global demand for grains, oilseeds and pulses.
Arysta Life Science sells crop protection products in 100 countries and had revenues of $1.5 billion last year.
The company is probably best known on the Prairies for Everest, a Group 2 herbicide used on wheat.
Platform was formed in 2013 with a strategy of acquiring existing companies. It is based in Florida.
