Becker Underwood reports "business as usual" during acquisition

There was a lot of talk last week about BASF's announcement of its plans to acquire Becker Underwood for $1.02 billion (see previous post). But one thing I didn't see was any word from Becker Underwood on what was the plan for right now, for today. Are products going to be available to superintendents as normal during the transition?

I reached out to Charlie Hale, Becker Underwood's marketing strategy and support lead, and this is what he had to say:

"The number one goal of Becker Underwood and BASF is ensuring that our customers continue receiving the high quality solutions they have come to expect from Becker Underwood. For now, business will continue “as usual” with the same people, products and services that our customers know and trust. Our production facilities are producing products; these products are available for purchase by our customers. And except for a few already-planned lineup tweaks -- including a couple new and/or improved products, no changes in the overall Becker Underwood product lineup is currently anticipated. Product lineups always evolve over time with new, improved products typically replacing older and/or poorer performing products. I wouldn’t expect that to change going forward."

BASF to acquire Becker Underwood for $1.02 billion

More big news in our industry -- big to the tune of $1.02 BILLION! BASF to acquire Becker Underwood, this news just hit my inbox at 8:03 a.m. EST... the entire press release is below.

We'll get on the phone to learn more, but for now, here's the official word from BASF: 

BASF to strengthen global crop protection business with acquisition of Becker Underwood

* BASF to become a global leader in biological seed treatments
* Strategic growth field Functional Crop Care strengthened
* Broader portfolio of integrated, sustainable solutions for agriculture

Ludwigshafen, Germany – September 20, 2012 – BASF plans to acquire Becker Underwood for a price of $1.02 billion (€785 million). The company, headquartered in Ames, Iowa, is one of the leading global providers of technologies for biological seed treatment, seed treatment colors and polymers, as well as products in the areas of biological crop protection, turf and horticulture, animal nutrition and landscape colorants and coatings. Becker Underwood has 10 production sites worldwide and 479 employees. BASF came to an agreement with Norwest Equity Partners (NEP) to acquire Becker Underwood which has been a portfolio company of NEP since 2004. The purchase is subject to approval by the responsible authorities and legal closing of the transaction is expected by the end of 2012.

“We are impressed with Becker Underwood’s ability to translate growers’ needs into innovative, tailor-made solutions that can promote higher yields while conserving resources. Becker Underwood is to become part of BASF and we are excited that together with our new colleagues we can continue expanding our competencies. Particularly in the rapidly-growing seed treatment market, we will be able to develop innovative solutions for agriculture,” said Dr. Andreas Kreimeyer, Research Executive Director and Member of BASF’s Board of Executive Directors responsible for the Agricultural Solutions segment.


Becker Underwood is expected to achieve sales of $240 million (€185 million) for fiscal year 2012, ending on September 30. As part of the acquisition, BASF’s Crop Protection division will create a strategic global business unit called Functional Crop Care. The unit will merge BASF’s existing research, development and marketing activities in the areas of seed treatment, biological crop protection, plant health, as well as water and resource management with those of Becker Underwood. Becker Underwood’s animal nutrition business will be integrated into BASF’s Nutrition & Health division.

Markus Heldt, president of BASF's Crop Protection division.

“Becker Underwood has a strong position in North America. We will continue to expand this core business as we expand globally. Together we can sustainably create value for our customers,” said Markus Heldt, President of BASF’s Crop Protection division. “We are thrilled at the prospect of working with the highly-qualified employees at Becker Underwood as we continue to develop our combined businesses.”

“Over the past years, Becker Underwood has established itself as an innovative provider of solutions for agriculture,” emphasized Dr. Peter Innes, Chief Executive Officer of Becker Underwood. “Strengthened by the power of BASF’s research capabilities as well as its existing portfolio of solutions, we will be able to develop and globally market new types of solutions for growers.”


Upon receiving the necessary legal approvals, the majority of Becker Underwood’s business will be integrated into BASF’s Crop Protection division. In 2011, the division recorded sales of around €4.2 billion and is expecting another top year in 2012 as well. With its products and services, BASF helps growers to improve their yields and the quality of their products.

Discussing innovative paths to sustainability

I'm at the 2012 BASF Agricultural Solutions Media Summit in Chicago today. We're midway through a day of great speakers and some terrific insights.

The meat of the program for me is a mere 40 minutes away as I write this -- that's when turf gets its own breakout session. Most of the focus so far has been on the Ag industry, but a lot of it applies to things we're seeing and doing in turf as well.

Like what Dave Long, President of Hilltop Ranch in California (seated second from left), said about sustainability during a panel discussion: "It's the right thing to do and it's economics -- doing more with less is better for business."

Perhaps most interesting to me was what Fred Below, professor of crop physiology, University of Illinois, said about spreading the message on  sustainability. "I wish I could tell you that (academia could spread the message) but we have been cut to the bone," he said. "It's up to the media -- you people have to get the word out. We have to educate you."