BASF Sells Agricultural Soil Fumigant Business to Kanesho Soil Treatment BVBA
BASF (NYSE: BF) and Kanesho Soil Treatment BVBA, Brussels, Belgium, a subsidiary of Agro-Kanesho Co., Ltd., Japan, reached final agreement on the sale of the global BASF soil treatment business to Kanesho. The business, sold under the trade name Basamid in the United States, with sales of EUR 47 million in 2002, consists of the active ingredients Dazomet, 1,3-Dichloropropene and Metam-Sodium as well as related contracts, including sourcing contracts, registration rights, intellectual property rights and customer relations. BASF will continue to manufacture Dazomet at its Ludwigshafen, Germany, site and supply Dazomet to Kanesho under a long-term agreement.
The purchase price for this business amounts to EUR 65 million, plus inventories. Closing is expected by the end of December 2003.
Soil treatment is a chemical strategy used independently or in conjunction with cultural and physical methods to control and reduce populations of soil-borne diseases and organisms. These products usually are incorporated into the soil, where the actives perform as a vapor. Soil fumigants effectively control soil-borne diseases and organisms, such as nematodes, fungi, bacteria, insects and weed seeds. Soil fumigants are used in agriculture, golf course renovation, horticulture, nurseries, ornamental beddings, forest systems, turf and other areas where soil-borne pests can harm or devastate desirable plants.