VALENT SELLS ORTHENE INSECTICIDE PRODUCT LINE
Divesture of product line reinforces portfolio strategy of both companies
January 7, 2008
WALNUT CREEK, Calif. (January 7, 2008)—Valent U.S.A. Corporation and AMVAC Chemical Corporation, a wholly owned subsidiary of American Vanguard Corporation (NYSE: AVD), have reached a definitive agreement on AMVAC's acquisition of Valent's Orthene® insecticide product line which is expected to close by mid-January 2008. Terms of the transaction were not disclosed.
The sale will allow Valent to focus on its current portfolio of crop protection products, as well as what many company officials consider the healthiest pipeline of new materials in the Company's 19-year history.
Trevor Thorley, President and Chief Operating Officer of Valent, commented, "After a highly successful history with Orthene, it is appropriate for us to direct our efforts towards our growing portfolio of innovative new products and to pass this fine product to a well-established firm that is capable of continuing that winning tradition. We are delighted that AMVAC Chemical has been chosen to provide the agricultural industry with a reliable supply of this very effective and useful insecticide."
Eric Wintemute, President & Chief Executive Officer of American Vanguard cited several reasons that make the Orthene acquisition relevant to AMVAC. "Our expertise in organophosphate chemistry manufacturing and marketing will permit a seamless assimilation of this product line into our existing operations. Our considerable sales presence in the U.S. cotton market, our continuing growth in the vegetable segment, and our recent focus on turf and ornamental applications all represent key market opportunities for the expansion of the Orthene brand. We are pleased to have the opportunity to continue to provide this technology and we expect to enjoy the type of commercial success that these products achieved under Valent's skillful management."
Under the agreement, AMVAC will take ownership of the assets of the Valent Orthene product line including all registrations, formulations and existing inventories of the agricultural and professional product lines, including the following:
Orthene 75 S Insecticide
Orthene 75 S WSP Insecticide
Orthene 90 S Insecticide
Orthene 97 Insecticide
Orthene PCO Pellets Insecticide
Orthene Turf, Tree & Ornamental Spray Insecticide
Orthene Turf, Tree & Ornamental Spray 97 Insecticide
The transfer of ownership will include proprietary formulation information, registration rights, marketing materials, certain intellectual property rights and existing inventories of Orthene.
Valent U.S.A. Corporation markets and sells fungicides, herbicides, insecticides, bio-insecticides, insect growth regulators, nematicides, baits and plant growth regulators for the agricultural, horticultural, turf, ornamental, industrial vegetation management and professional pest control markets.
About American Vanguard
American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. American Vanguard is included on the Russell 2000® and Russell® 3000 Indexes. To learn more about American Vanguard, please reference the Company's web site at www.american-vanguard.com.