DuPont’s DD Crop Protection business has agreed to divest its global Bromacil herbicide business assets to AMVAC C.V. – the Netherlands-based subsidiary of American Vanguard Corporation AVD. The financial terms of the deal were not divulged.
The assets that have been put up for sale by DuPont include the Bromacil Hyvar and Krovar trademarks, product registrations, customer information, access to specific know-how, technical registrations and related registration data outside of North America.
Bromacil, which is marketed globally under the Hyvar and Krovar monikers, is a key herbicide used on crops such as pineapples, citrus, agave and asparagus. It is an important weed control tool used in countries such as Japan, Thailand, Mexico, Cost Rica and Brazil.
The divestment represents another important step in the execution of DuPont’s Crop Protection business growth strategy and further broadens the company’s focus on novel offerings that boost profitable growth in both short and long haul.
On the other hand, the buyout of the Bromacil assets expands AMVAC’s herbicide portfolio and reinforces its competitive position in a number of profitable niche crop markets. The acquisition will also enhance AMVAC’s international expansion initiative.
DuPont’s agriculture business is represented by the Crop Protection and Pioneer units. Revenues from DuPont's Agriculture segment fell 10% year over year to around $3.9 billion in the first quarter of 2015. Earnings for the segment declined as better mix and productivity and pricing actions were more than offset by unfavorable currency impact, lower volumes from reduction in global corn planted area and weaker insecticide demand in Latin America.
DuPont is a Zacks Rank #3 (Hold) stock.
Better-ranked stocks in the chemical space include LyondellBasell Industries N.V. LYB and Celanese Corp. CE. While LyondellBasell sports a Zacks Rank #1 (Strong Buy), Celanese holds a Zacks Rank #2 (Buy).
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