BASF sells agricultural soil fumigant business to Kanesho Soil Treatment BVBA

BASF Aktiengesellschaft, Ludwigshafen, Germany, and Kanesho Soil Treatment BVBA, Brussels, Belgium, a subsidiary of Agro-Kanesho Co., Ltd., Japan, reached final agreement on the sale of the global BASF soil treatment business to Kanesho. The business with sales of EUR 47 million in 2002 consists of the active ingredients Dazomet, 1,3-Dichloropropene, and Metam-Sodium as well as related contracts, including sourcing contracts, registration rights, intellectual property rights and customer relations. BASF will continue to manufacture Dazomet at its Ludwigshafen, Germany, site and supply Dazomet to Kanesho under a long-term agreement.

The purchase price for this business amounts to EUR 65 million plus inventories.

“Through our last acquisitions we have achieved strong positions in the major regional markets. We have consequently reviewed our portfolio and are focusing our resources on the products with higher growth, high margins and strong market synergies. We have identified some products with limited synergy for us, which are clearly a better strategic fit for a specialized company, like Agro-Kanesho”, explained Peter Oakley, a member of BASF’s Board of Executive Directors.

“For Agro-Kanesho, this is an important strategic step forward in developing our soil treatment business on a global basis”, says Hironori Kushibiki, President of Agro-Kanesho. “With our strong emphasis on customer value and our unique marketing strategy, we see potential future growth opportunity in this business by applying our accumulated skills and know-how to overseas markets, supported by the trend for environmentally friendly products.”

Soil treatment is a chemical strategy used independently or in conjunction with cultural and physical methods to control and reduce populations of soil borne diseases and organisms. These products usually are incorporated into the soil, where the actives perform as a vapor. Soil fumigants effectively control soil-borne diseases and organisms, such as nematodes, fungi, bacteria, insects and weed seeds. Soil fumigants are used in agriculture, golf course renovation, horticulture, nurseries, ornamental beddings, forest systems, turf and other areas where soil-borne pests can harm or devastate desirable plants.

Agro-Kanesho is a medium-sized manufacturer and distributor of agrochemical products in Japan. Agro-Kanesho’s products include insecticides, fungicides and herbicides, primarily for the horticulture market. Agro-Kanesho has been a distributor of Basamid®, the BASF trademark for Dazomet-containing products, for 23 years, and has played a significant role in expanding the business. In 2002, Agro-Kanesho had sales of JPY 7.8 billion and 214 employees. Further information on Agro-Kanesho is available on the Internet at www.agrokanesho.co.jp.

With sales of EUR 3 billion in 2002, BASF’s Agricultural Products division, headquartered in Mount Olive, New Jersey, USA, is a leading supplier and marketer of fungicides, insecticides and herbicides. Based on its broad experience in R&D, manufacturing, marketing and sales, the vision of BASF’s Agricultural Products division is to be the world’s leading innovator, optimizing agricultural production, improving nutrition, and thus enhancing the quality of life for a growing world population. Further information on BASF Agricultural Products can be found on the web at www.basf.de/en/produkte/gesundheit/pflanzen.