UPDATE 1-Germany's BASF to buy Becker Underwood for $1 bln

Thu Sep 20, 2012 7:29pm IST

Stocks

   

* Pays $1.02 billion to Norwest Equity Partners

* Biggest BASF deal since 2010 Cognis purchase

* In line with BASF strategy to become less cyclical

FRANKFURT, Sept 20 (Reuters) - BASF, the world's largest chemicals maker, is to buy U.S. crop protection company Becker Underwood from buyout firm Norwest Equity Partners for $1.02 billion to boost its farming pesticides division, the German group said on Thursday.

BASF's largest deal since its 2010 acquisition of Cognis, which makes additives for household products, continues its strategy of buying into industries that are less dependent on the business cycle than its core chemicals and plastics businesses catering to industrial customers.

Becker Underwood, which expects sales of $240 million in 2012, is a global provider of seed treatments, biological crop protection products, gardening products and animal nutrition.

Seeds treatments are chemical coatings that protect seeds and germ buds against microbes and fungi.

The purchase helps BASF keep up with larger pesticides rivals Syngenta, Bayer and Dupont's Pioneer unit.

BASF's Chief Executive Kurt Bock said in July that ample liquidity and cash reserves were available for deals.

Also that month, BASF's Agricultural Solutions division posted record quarterly operating earnings as farmers used more pesticides to get the most out of a surge in grain prices, while BASF industrial units faced weaker markets.

BASF said on Thursday that the pesticides division "is expecting another top year in 2012" after record sales of 4.2 billion euros ($5.48 billion) last year.

The Becker Underwood deal is subject to regulatory approval and the transaction is expected to be completed by the end of this year, BASF added.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage