We took an in-depth look at trends and opportunities in the agricultural industry and what they are influenced by. We also looked at our portfolio and what farmers need to be successful, today and in the future. Our goal is to even better combine innovative technologies, solutions and know-how to support farmers to grow more high-quality food more efficiently and safely. We decided that this acquisition was the best next step for BASF.
The acquisition is a targeted, strategic complement to our well-established, successful crop protection business and biotechnology activities. It increases and broadens our R&D and digital capabilities considerably, creating new opportunities for growth and innovation and strengths our overall market position and competitiveness. The new businesses bring in more than €2 billion in revenue.
The acquisition marks our entry into the seeds, non-selective herbicide and nematicide seed treatment businesses. With this sizeable addition to our portfolio, including about 4,500 new employees, we will be able to offer a greater choice of solutions to our customers and prove ourselves as a reliable, long-term partner in a changing industry.
It is an important milestone in shaping the future of BASF in agriculture and reinforces our long-term commitment to sustainable agriculture.
Through this acquisition, BASF can compete with bigger players in the agricultural market for the long term. With our expanded portfolio across seeds and traits, chemical and biological crop protection, soil management, plant health, pest control and digital tools, we can offer farmers even more solutions to help increase their yields, crop quality and profitability, while ensuring a responsible balance between increased productivity and the efficient use of scarce resources.. Our combined, complementary R&D portfolio brings even better innovation capabilities and scale, which enables us to seize future market opportunities and increase competition. This generates choice, superior solutions and long-term value for our customers.
All this is backed by an expanded team of highly experienced, motivated professionals passionate about the future of agriculture.
Our customers are number one and ensuring a seamless transition while maintaining business continuity is a top priority for us. It is our pledge to be a strong partner from Day 1.
The acquisition is the perfect opportunity to create a broad, balanced offering that gives our customers real choice in a consolidating and changing industry. BASF will become an even better partner for farmers by strengthening our crop protection portfolio, providing differentiated seed and trait products, adding more digital tools, and growing our experienced team to help farms thrive today and in the future. The acquisition makes us the world's fourth largest player with seeds and crop protection with a much better geographical coverage.
The scope includes Bayer’s global glufosinate-ammonium business; canola/oilseed rape, cotton, soybean and vegetable seed businesses; R&D platform for hybrid wheat; certain seed treatment products; certain glyphosate-based herbicides in Europe, used predominantly for industrial applications; the complete digital farming platform xarvioTM; canola-quality juncea research and certain non-selective herbicide and nematicide research projects.
The transaction strengthens our portfolio, is fully in line with BASF's strategy and contributes to how we address the growing demand for food globally.
The strategy targets seven customer industries - transport, construction, consumer goods, health and nutrition, electronics, energy & resources and agriculture - where BASF can contribute to solving global challenges such as a growing world population and thus continue to grow profitably.
The all-cash purchase price for the combined acquisition is €7.6 billion, subject to certain adjustments at closing.
BASF is taking over many sites globally, including 5 chemical production and formulation sites, 17 R&D sites and more than 200 regional seed production and breeding facilities.
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This presentation 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. Such risk factors include those discussed in the Opportunities and Risks Report from page 111 to 118 of the BASF Report 2017. BASF does not assume any obligation to update the forward-looking statements contained in this presentation above and beyond the legal requirements.