Breaking News: Feb. 1998, Zeneca Purchase; AgriBioTech Acquisition

Zeneca Buys Chlorothalonil Business With ISK

WILMINGTON, Del. - Zeneca Professional Products boosted its share of the U.S. fungicide market with its acquisition of the chloro-thalonil business of ISK Biosciences Corp., Mentor, Ohio. The acquisition, valued at $410 million, will give Zeneca rights to clorothalonil worldwide, including lawn and landscape uses in the U.S. Clorothalonil is sold under the trade names Bravo and Daconil 2787.

The acquired part of ISK’s chlorothalonil business generated an operating profit of $43 million from sales of $240 million in the U.S. in 1996, according to ISK.

We are delighted to have reached this agreement with ISK, with whom we have a long-standing relationship, said Michael Pragnell, chief executive officer of Zeneca Agrochemicals. The addition of chlorothalonil to Zeneca’s range is an important enhancement to our goal of attaining a leading position in the global fungal control market.

According to Vern Hawkins, fungicides product manager for Zeneca, Daconil represents approximately 10 percent to 15 percent of the estimated $150 million golf and grounds fungicide market in the U.S., and complements the company’s Heritage fungicide, which completed its first full season of use in 1997.

It provides dollar spot control that Heritage is not labeled for,’’ noted Hawkins, and it will make a good partner with Heritage in disease resistance management programs.

Completion of the purchase was expected by the end of January.

- Paul Schrimpf

AgriBioTech Eyes More Seed Companies For Acquisition

LAS VEGAS - Rapidly moving ahead with its expansion plans, AgriBioTech has acquired yet another seed company, making this its 17th purchase since January 1995.

ABT announced Jan. 13 that it has purchased Seed Corporation of America for $10 million. Officials from the aggressively growing company with reported annualized net sales of about $326 million, also said it has pending acquisitions with five more companies: Zajac Performance Seeds, Discount Farm Center, Ohio Seed Co., Van Dyke Seed Co, and Las Vegas Fertilizer Co.

On Jan. 9, ABT announced it had signed intent to purchase letters with Zajac Performance Seeds, Ohio Seed, Van Dyke Seed, and Las Vegas Fertilizer. The four companies’ combined revenue was reported at about $46 million.

According to an ABT press release, all three owners of Zajac will continue as employees of ABT with long-term contracts.

The strong management team of Zajac, coupled with its Oregon production operations and strong distribution base, will be complementary to AgriBioTech’s existing turfgrass operations., according to the release.

John Zajac, president of 9-year-old Zajac Performance Seeds, said he expects to see the purchase go through ABT by March. The small seed company based in N. Haledon, N.J. with its warehouse in Albany, Ore., employs 12 full-time workers.

Zajac said he sees his alignment with the much larger ABT as a move to make his company stronger and produce better products for customers.

- Denyse Fissel