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BASF completes acquisition of Becker Underwood

BASF completes acquisition of Becker Underwood

BASF announced Nov. 28 that it has completed the acquisition of Iowa-based seed treatment technology firm Becker Underwood.

BASF announced in September that it would acquire the company from private equity firm Norwest Equity Partners for $1.02 billion (Feedstuffs, Sept. 24).

BASF said the acquisition advances its role as a leading global provider of technologies for biological seed treatment as well as seed treatment colorants and polymers. Most of the Becker businesses will join BASF's newly established Functional Crop Care unit within BASF Crop Protection.

The company said acquiring Becker was part of a long-term growth strategy to expand the BASF product portfolio in biological crop protection, turf and horticulture and animal nutrition.

In the coming months, BASF leadership will work with Becker employees to develop a detailed integration plan. For now, it is known that BASF and Becker will merge their existing research, development and marketing activities in the areas of seed treatment, biological crop protection, plant health and water and resource management as part of the new crop care unit.

Becker's animal nutrition business, meanwhile, will be integrated into BASF's Nutrition & Health division.

In 2011, BASF Crop Protection reported sales of €4.2 billion. The division is based in Ludwigshafen, Germany, and has its North American operations base in Research Triangle Park, N.C.

Volume:84 Issue:50

Nestle completes acquisition of Pfizer Nutrition

Nestle completes acquisition of Pfizer Nutrition

NESTLE S.A. last week completed the acquisition of the infant nutrition business of Pfizer Inc. for $11.85 billion, clearing the way for Pfizer to concentrate on the planned spin-off of its animal health business in the first half of next year.

Nestle noted that Pfizer Nutrition has strong brands and is present around the world, especially in emerging markets with large, rapidly growing populations. Nestle said the acquisition allows it to build on its global presence and growth-focused strategies.

Pfizer announced intentions to sell or spin off the animal health and nutrition businesses last year to better focus on its core interests in human medicines and to maximize shareholder value (Feedstuffs, March 21, 2011). It subsequently decided to sell the nutrition business and to sell 20% of the animal health business in an initial public offering (Feedstuffs, April 30 and June 18).

Pfizer Animal Health, the largest animal health company in the world, with sales totaling $4.184 billion, will be spun off as Zoetis, formed from the word "zoetic," which means "pertaining to life."

Volume:84 Issue:51

CME completes acquisition of KCBT

CME completes acquisition of KCBT

CME Group last week announced the completion of its acquisition of the Kansas City Board of Trade (KCBT).

The acquisition combines CME's futures and options in soft red winter wheat with KCBT's platform in hard red winter wheat, the largest such trading platform in the world.

CME chair Terry Duffy said the integration of the two global wheat benchmarks offers new opportunities to commercial grain and wheat traders and others who can continue to rely on CME and KCBT to manage their wheat price risk.

CME offers its wheat products through the Chicago Board of Trade (CBOT).

CME chief executive officer Phupinder Gill said CME plans to work with customers to develop innovative new products for both wheat varieties that will expand the existing CBOT and KCBT wheat programs.

CME and KCBT announced an agreement for the acquisition in October and said the deal was for $126 million in cash (Feedstuffs, Oct. 22). The acquisition was cleared by the Federal Trade Commission last month (Feedstuffs, Nov. 19).

CME said it will continue operating the KCBT trading floor in Kansas City, Mo., for at least the next six months and will name a committee of KCBT market participants to provide advice about hard red winter wheat contract conditions and trading for at least the next three years.

CME, headquartered in Chicago, Ill., operates the Chicago Mercantile Exchange and CBOT, which it acquired for $11 billion five years ago, forming CME Group (Feedstuffs, July 16, 2007). It also operates the New York Mercantile Exchange, which it acquired for $9 billion four years ago (Feedstuffs, Sept. 1, 2008).

CME is the largest derivatives group in the world and offers trading in virtually every major asset class, including agricultural commodities, energy, metals, real estate, weather and a number of financial instruments.

In agriculture, it trades corn, soybeans, wheat, cattle, hogs, dairy products and soft commodities such as cocoa, cotton and sugar.

CME reported 2011 revenues of $3.3 billion.

Volume:84 Issue:51

Stock market summary, 12/10/12

Stock market summary, 12/10/12

 

Dec. 5  

Nov. 28

Year ago

Feedstuffs-Moskow Stock Indexes

Agribusiness

395.10

390.60

369.00

Baking

146.90

142.20

119.80

Fertilizer

539.40

530.30

570.90

Meat

381.60

374.00

360.00

Poultry

384.80

332.90

212.60

Packaged Foods

172.00

172.10

185.10

Dow Jones Ind.

13,034.00

12,985.00

12,196.00

NASDAQ

2,973.70

2,991.78

2,649.21

S&P 500

1,409.30

1,409.90

1,261.00

 

 

-2011-12-

Dec. 5

Nov. 28

 

Highs

Lows*

Close

Close

Andersons, The

51.01

35.63

41.59

42.07

ADM

33.50

24.48

26.72

26.60

Balchem

42.32

26.60

35.59

35.23

Bunge Ltd.

73.19

55.86

71.40

72.45

Cagle's

3.45

0.02

3.00

3.00

Cal-Maine Foods

46.16

33.11

44.74

45.19

Church & Dwight

58.76

43.93

53.67

54.01

ConAgra

29.86

23.81

29.69

29.65

Corn Product

65.43

45.59

65.94

64.60

CSX

23.68

19.01

20.16

19.78

Digital Angel

0.16

0.03

0.07

0.07

DuPont

53.80

41.95

42.62

43.24

Hormel

31.30

27.48

31.02

30.71

IGI

1.34

0.94

1.05

1.09

Internatl Flavors

65.32

51.31

64.43

64.57

KC Southern

83.63

61.90

77.32

79.50

Kraft Foods

42.52

25.11

25.49

25.66

Lilly

53.81

37.37

49.58

48.04

Merck

47.96

34.99

44.39

44.60

Monsanto Co.

92.08

67.45

89.60

91.31

Mosaic

61.05

45.62

53.08

53.17

MWI Vet. Supply

117.12

65.29

111.83

113.03

Neogen

47.80

30.14

46.75

45.01

Novartis

63.72

51.48

62.40

61.28

Omega Protein

9.12

6.05

6.31

6.25

Pfizer

26.04

19.84

25.64

24.67

Philip Morris

36.16

28.14

33.30

33.41

Pilgrims Pride

8.56

4.28

7.37

6.97

Potash Corp.

47.45

37.28

39.59

38.57

Sanderson Farms

55.01

36.50

48.05

48.18

Sara Lee

111.60

24.46

27.93

27.82

Seaboard

2,532.98

1,828.65

2,370.00

2,352.00

Smithfield Foods

24.97

17.82

22.90

22.29

Strategic Diag.

2.10

1.00

1.04

1.10

Tejon Ranch

31.26

23.59

27.16

26.20

Tyson Foods

20.91

14.17

19.60

19.08

YUM! Brands

74.47

56.25

65.90

73.89

Feedstuffs’ Stock Summary indexes and stock quotes are provided by Credit Suisse First Boston (CSFB), New York, N.Y.

Moskow Stock Indexes are developed exclusively for Feedstuffs by Rob Moskow at CSFB. E-mail Moskow at [email protected]

*Highs and lows are as of Dec. 5.

 

Volume:84 Issue:51

Dean to sell Morningstar to Saputo

Dean to sell Morningstar to Saputo

DEAN Foods Co., the largest dairy processor in the U.S., announced last week an agreement to sell its Morningstar Foods division to Saputo Inc., the largest dairy processor in Canada.

Dean said the deal is priced at $1.45 billion and is subject to customary closing conditions, including regulatory review, but should close yet this month or early next year.

Morningstar is a leading manufacturer of dairy and non-dairy cultured and extended-shelf life products, including cream and creamers, cottage cheese, sour cream, ice cream mixes, whipping cream, aerosol whipped toppings and iced coffees that are marketed under a broad line of private labels to foodservice, grocer and other customers across the U.S. It had 2011 sales that totaled $1.3 billion.

Dean, which recently sold a minority stake in its organic and plant-based beverages and specialty products division, The WhiteWave Foods Co., in a public offering (Feedstuffs, Oct. 29), announced earlier this year that it was considering selling Morningstar (Feedstuffs, Oct. 1).

Dean chief executive officer Gregg Tanner said proceeds from the Morningstar sale will be used "to significantly reduce" corporate debt, providing the company with flexibility to "sharpen our focus" on the conventional dairy business.

Dean said it expects to realize $887 million in proceeds.

Dean also said it will allocate $60 million to WhiteWave as consideration for the termination of an agreement with WhiteWave to acquire production capacity at one Morningstar facility and manufacturing equipment at another Morningstar plant.

Saputo said Morningstar will complement its U.S. activities, which are organized as Saputo Dairy Products USA.

The company said the acquisition provides its U.S. operations with a national manufacturing and distribution system, expands its line of products and "will broaden the range of Saputo's future acquisition opportunities."

Morningstar has approximately 2,000 employees and operates 10 manufacturing plants in nine states.

Saputo, headquartered in Montreal, Que., produces and markets a major platform of dairy products, including fluid milk, cheese, dairy ingredients, yogurt and snack cakes in Canada, the U.S. and more than 50 other countries. It is the third-largest cheese producer in the U.S.

The company has approximately 10,000 employees and 47 manufacturing plants in five countries.

Saputo reported fiscal 2012 sales of $6.9 billion (Canadian).

Dean, headquartered in Dallas, Texas, processes and markets fluid milk under more than 50 local and regional brands and private labels, as well as cultured dairy products, ice cream, juice, tea, bottled water and other products.

The company reported 2011 sales of $13.1 billion.

Volume:84 Issue:51

Names in the News, 12/10/12

Names in the News, 12/10/12

FARM CREDIT ADMINISTRATION, McLean, Va. -- Jill Long Thompson has been named chair and chief executive officer. Long Thompson will be responsible for policy-making, adopting regulations and overseeing the examination and regulation of the institutions that compose the Farm Credit System. She was most recently a member of the board.

FBSCIENCES INC., Memphis, Tenn. -- Terry Hanson has been promoted to chief technology officer. Hanson will oversee all aspects of proprietary technology, including the product development pipeline and promising efforts to identify future generations of its plant growth regulator products. He was most recently vice president of research and development.

NATIONAL MILK PRODUCERS FEDERATION, Arlington, Va. -- Jim Mulhern will join the federation on Jan. 1 as chief operating officer. Mulhern will oversee communications, government relations and membership functions. He was previously with Fleishman-Hillard, the Fratelli Group and Watson/Mulhern LLC.

Volume:84 Issue:51