In addition to the agreement signed in October 2017, BASF has signed an agreement to purchase further businesses and assets, which Bayer offered to divest in the context of its planned acquisition of Monsanto. The expanded scope includes:
- Bayer’s entire vegetable seeds business, operating under the global trademark Nunhems®,
- seed treatment products sold under the Poncho®, VOTiVO®, COPeO® a and ILeVO® brands,
- the R&D platform for hybrid wheat and
- the complete state-of-the-art digital farming platform xarvioTM.
The transaction also includes Bayer’s oilseed rape business in Australia; certain glyphosate-based herbicides in Europe, used predominantly for industrial applications; the canola-quality juncea research and certain non-selective herbicide and nematicide research projects.
The all-cash purchase price for the additional businesses and assets BASF agreed to acquire is €1.7 billion, subject to certain adjustments at closing. For the full year 2017, sales of these businesses amounted to around €745 million.
This purchase is in addition to the agreement BASF and Bayer signed on October 13, 2017, which entails the acquisition of Bayer’s global glufosinate-ammonium non-selective herbicide business; seeds businesses for key row crops in select markets and trait research and breeding capabilities for these crops along with the LibertyLink® trait and trademark. These businesses generated sales of €1.5 billion in 2017. The all-cash purchase price for this prior transaction is €5.9 billion, subject to certain adjustments at closing.
Both transactions, with combined 2017 sales of €2.2 billion and combined 2016 sales of €2.0 billion, complement BASF’s crop protection business and biotechnology activities, adding new capabilities and opportunities for profitable growth and innovation. The all-cash purchase price for the combined acquisition is €7.6 billion, subject to certain adjustments at closing. In 2016, the combined businesses generated EBITDA of €550 million (on a pro forma adjusted basis).
“With this acquisition, BASF will become an even better partner for farmers by strengthening our crop protection portfolio and entering the seeds business in key agricultural markets. Through the expanded scope, we are accelerating and broadening the basis for growth across all regions,” explained Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.
“This is another important milestone shaping the future of BASF in agriculture, and we look forward to having the new colleagues join the team and play an active part in our future growth,” said Saori Dubourg, member of the Board of Executive Directors of BASF SE and responsible for the Agricultural Solutions segment. “Our customers will benefit from a balanced and highly innovative offering that will give them a real choice and help them develop their businesses successfully,” Dubourg added.
“With our expanded portfolio across seeds and traits, chemical and biological crop protection, soil and plant health, and digital farming applications, we will have even more tools to support farmers,” explained Markus Heldt, President of BASF’s Crop Protection division. “When these transactions are completed, we will have more than 12,000 experienced employees working in agriculture to connect innovative thinking with practical action to help our customers increase their yields, crop quality and profitability,” Heldt concluded.
All transactions remain subject to the closing of Bayer’s acquisition of Monsanto, expected in the second quarter of 2018. BASF’s acquisition of the businesses and assets Bayer offered to divest in the context of its planned acquisition of Monsanto remains subject to the approval by relevant merger control authorities.
At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. The more than 115,000 employees in the BASF Group work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into five segments: Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions and Oil & Gas. BASF generated sales of €64.5 billion in 2017. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (BAS). Further information at www.basf.com.
About BASF’s Crop Protection division
With a rapidly growing population, the world is increasingly dependent on our ability to develop and maintain sustainable agriculture and healthy environments. BASF’s Crop Protection division works with farmers, agricultural professionals, pest management experts and others to help make this possible. With their cooperation, BASF is able to sustain an active R&D pipeline, an innovative portfolio of products and services, and teams of experts in the lab and in the field to support customers in making their businesses succeed. In 2017, BASF’s Crop Protection division generated sales of €5.7 billion. For more information, please visit us at www.agriculture.basf.com or on any of our social media channels.
This release contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. BASF does not assume any obligation to update the forward-looking statements contained in this release above and beyond the legal requirements.