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Dow
on Monday said it agreed to sell a portfolio of weed killers
known as dinitroanilines to privately held Gowan Company. The
deal comes a month after Dow said it was reviewing all options
for its farm chemicals and seeds unit, which has reported
falling sales for nearly a year.
The companies did not disclose terms of the deal. It is expected
to close by the end of the year, they said.
The farm sector is struggling to cope with falling crop prices
and diminished demand for crop protection products, which have
hurt sales in the agricultural businesses at companies including
Dow, Monsanto Co <MON.N> and EI du Pont de Nemours & Co <DD.N>.
Dow's sale includes global product registrations and trademarks
for herbicides including Treflan, which can be sprayed on field
corn, cotton and some fruit and vegetables, according to a
statement. A formulation and packaging facility in Alberta,
Canada, is also part of the deal.
Dinitroanilines, or DNA herbicides, have been a part of weed
management programs for more than 50 years, according to Dow.
The company will "invest in innovative and differentiated
products,” Ramiro De La Cruz, vice president of crop protection
for Dow AgroSciences, said in the statement.
A company spokeswoman did not immediately answer questions
seeking more information.
"We are grateful for the opportunity to defend and evolve the
DNAs for niches that have long been our sweet spot, such as
vegetables and turf," said Juli Jessen, chief executive of Gowan
Group.
Dow rival Monsanto has said it is studying every possibility for
consolidation in the seed and agrochemical sectors.
Monsanto, the world's largest seed company, abandoned a $45
billion bid for Syngenta AG <SYNN.VX> in August and since then,
nearly all of the major players in the farm chemicals and seeds
business have been the subject of consolidation talk.
(Reporting by Tom Polansek; Editing by Bernard Orr)
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