The company intends to acquire the Environmental Science Division (ESD) of Valent BioSciences Corporation (VBC).
***updated on 8/12/2013 at 2:15 p.m. with additional comments from MGK's Ian Thorburn***
MINNEAPOLIS, Minn. – MGK, an affiliate of Sumitomo Chemical Co., Ltd. (Sumitomo), announced that it intends to acquire the Environmental Science Division (ESD) of Valent BioSciences Corporation (VBC), based in Libertyville, Illinois. This acquisition will broaden MGK’s portfolio of active ingredients and formulation technologies, enhancing its portfolio of insect control solutions, according to MGK President Steve Gullickson.
“This is a great opportunity for MGK,” said Gullickson. “Valent BioSciences’ ESD is a successful, well-operated business that has developed many effective insect control products, many of which will complement MGK’s existing product portfolio. More importantly, MGK is now in an even stronger position to serve our customers and create environmentally responsible and effective insect control solutions.”
MGK currently has approximately 250 EPA product registrations in the U.S, with one-third of its product line utilizing pyrethrum, the natural botanical ingredient. The remaining products are designed using conventional active ingredients and formulation technologies proprietary to MGK. By purchasing VBC’s Environmental Science Division, MGK will immediately add more than 100 registered products to its roster.
“Our acquisition of the Environmental Science Division of Valent BioSciences consolidates a broad range of environmental health chemistry under one roof for future product development, which is very powerful,” says Ian Thorburn, group marketing manager, MGK. “We’re in the process of going through the entire portfolio to identify which technologies will be most valuable to the professional pest management industry. Acquiring these technologies will allow MGK to continue developing leading solutions for the professional market.”
There were 17 people employed by the Environmental Science Division of Valent BioSciences in Libertyville, Ill. “MGK is working to retain certain employees, further strengthening the team we have in place to serve the pest control marketplace,” Thorburn said.
The transition of this Valent BioSciences division embodies the growing partnership between Minnesota-based MGK and Sumitomo. This acquisition aligns Sumitomo’s USA-based environmental health insect-control technologies under the MGK umbrella.
The acquisition is expected to close in September.