Sumitomo Chemical gains Australian firm Botanical Resources
Sumitomo Chemical has acquired 82.9% of shares in Botanical Resources Australia, as well as its affiliated companies (the BRA Group) from the shareholders.
BRA Group focuses on the production of insecticidal compounds pyrethrin. Following the transaction, the group will operate as a consolidated subsidiary of Sumitomo Chemical. Financial details of the transaction have not been disclosed.
The remaining 17.1% stake of the BRA Group will be held by McLaughlin Gormley King Company, which is 86.5% owned by Sumitomo Chemical.
Extracted from the pyrethrum flower, pyrethrins are insecticidal compounds with the same basic chemical structure as synthetic pyrethroids.
Pyrethrins are commonly used in insecticides for household, vector control, pest control management and crop protection.
The BRA Group was established in 1996 and based in Tasmania, Australia, with 70 employees.
With this acquisition, Sumitomo Chemical Group intends to use the technical know-how of the BRA Group in production and sales of pyrethrins.
The company also expects that the acquisition will enable it to form a more stable supply system for pyrethrins by using new production bases for pyrethrum subject to different climate conditions.
Last week, Sumitomo Chemical decided to extend its global collaboration agreements with crop protection company Nufarm.
Both companies entered a strategic business tie-up in April 2010.
The collaboration is focused on developing mixtures of existing chemicals and new mixture products using Sumitomo Chemical's fungicide portfolio. Under an extended deal, the firms agreed to continue their ongoing developmental programmes.
Image: Pyrethrum cultivation by the BRA Group. Photo: courtesy of Sumitomo Chemical Co Ltd.