American Vanguard Acquires Brazilian Agricultural Distributor
January 10 2019 - 4:05PM
Business Wire
Well-established platform for expanded
market access
American Vanguard Corporation (NYSE:AVD), today announced the
acquisition of two affiliated Brazilian limited liability
companies, Agrovant and Defensive. Founded in 2000, these combined
businesses have become a rapidly growing supplier of crop
protection products and micronutrients with annual sales of
approximately $20 million and a primary focus on the fruit and
vegetable market segments. Financial terms of this transaction are
not being disclosed.
Eric Wintemute, Chairman and CEO of American Vanguard commented,
“Our acquisition of Agrovant and Defensive expands our access to
the Brazilian agricultural sector, which at approximately $9
billion ranks as the largest crop protection market in the world.
This distribution franchise located in the province of Sao Paulo
consists of 35 full-time employees complemented by a group of
experienced commissioned sales agents. Company management has been
highly successful at driving significant revenue and earnings
growth, while maintaining excellent control of working capital,
credit risk, and debt financing.”
Mr. Wintemute continued, “Similar to our expansion in Central
America following the acquisition of Grupo AgriCenter in late 2017,
this transaction provides American Vanguard with a solid platform
for marketing AMVAC products, distributing products from
third-party manufacturers, and providing support for the
introduction of SIMPAS™ prescription planting systems in South
America. In addition to Agrovant/Defensive’s existing strong
position in fruits & vegetables, the company will continue its
penetration of the extensive Brazilian soybean market. We also
expect expanded involvement in the corn, cotton and sugar cane
segments as well as the high-margin, fast-growing $2 billion
micronutrients market.”
Mr. Wintemute concluded, “We will have the benefit of continued
leadership from Mr. John Redfern, the current CEO of
Agrovant/Defensive, who will remain directly involved in the
business through 2021. By combining this excellent distribution
franchise with AMVAC’s portfolio of products and equipment systems,
we have created a very dynamic participant in the Brazilian
agricultural marketplace and a significant contributor to the
overall growth of American Vanguard’s international business.”
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® and Russell 3000® Indexes and the Standard &
Poor’s Small Cap 600 Index. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190110005653/en/
Company Contact:American Vanguard CorporationWilliam A.
Kuser, Director of Investor Relations(949)
260-1200williamk@amvac-chemical.com
Investor RepresentativeThe Equity Group
Inc.www.theequitygroup.comLena Cati (212)
836-9611Lcati@equityny.com
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