Divestiture of product line reinforces portfolio strategy of both
companies
NEWPORT BEACH, Calif.--(Business Wire)--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(R) 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(R) and Russell(R) 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.
American Vanguard Corporation
William A. Kuser, 949-260-1200
Director of Investor Relations
williamk@amvac-chemical.com
-OR-
AVD'S INVESTOR RELATIONS FIRM
The Equity Group Inc.
www.theequitygroup.com
Lena Cati, 212-836-9611
Lcati@equityny.com
Linda Latman, 212-836-9609
Llatman@equityny.com
Copyright Business Wire 2008
