07.01.2008 14:00:00
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Valent Sells Orthene Insecticide Product Line to AMVAC Chemical Corporation
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.
About Valent
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.
The Company, from time to time, may discuss forward-looking information.
Except for the historical information contained in this release, all
forward-looking statements are estimates by the Company’s
management and are subject to various risks and uncertainties that may
cause results to differ from management’s
current expectations. Such factors include weather conditions, changes
in regulatory policy and other risks as detailed from time-to-time in
the Company’s SEC reports and filings. All
forward-looking statements, if any, in this release represent the Company’s
judgment as of the date of this release.
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