Arysta to acquire Mexican horticultural input supplier, Grupo Bioquimico Mexicano (GBM - Saltillo, Coahuila).

Arysta LifeScience has agreed to acquire the Mexican horticultural input supplier, Grupo Bioquimico Mexicano (GBM - Saltillo, Coahuila). The company is the leading Mexican manufacturer and marketer of inputs for the fruit and vegetable market, Arysta says. The deal includes: GBM and its subsidiaries; affiliated land, buildings and employee service companies; and formulation and manufacturing facilities in Ramos Arizpe, Coahuila. The transaction is subject to regulatory approval. Financial terms were not disclosed.

GBM's sales were around $40 million in 2006. It has 226 employees, of which 51 are sales staff. The company's product portfolio consists of plant growth regulators, foliar fertilisers, nutrition enhancers and crop protection products. It also distributes third-party agrochemical products to other distributors and through its retail business, Promotora, in northern Mexico. Its sales are primarily in Mexico, Central and South America, with a small export business to Europe.

Arysta intends to continue operations at GBM's Saltillo headquarters as well at Arysta's existing regional headquarters in Mexico City. The acquisition will "significantly" expand Arysta's crop protection business in Mexico, it says. It will also increase the company's overall presence in the high-value fruit and vegetable markets in Latin America and globally, the company adds. GBM's products will complement Arysta's crop protection portfolio, particularly in crops such as potatoes, tomatoes, cucurbits, peppers and bananas, says company president and CEO Chris Richards.

Arysta will use its existing businesses in Central and South America and other regions of the world to accelerate the growth of GBM's products in key horticultural markets. "In order for our company to grow, we wanted to find a business partner with the resources to expand the market for our products," says GBM president Cesar Cant? Benavides.

Horticulture is one of Arysta's key focus markets, Mr Richards says. The high-value fruit and vegetable sector is growing faster than the overall crop protection market and represented global sales of some $8,000 million in 2006, he notes. While traditional pesticides will continue to play a part, products that enhance plant quality and health are becoming increasingly important, he adds.

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