Arysta LifeScience to Buy Major Assets of Micro Flo BASF

CARY, N.C. and FLORHAM PARK, N.J. – Arysta LifeScience North America Corp. and BASF Corp. today announced that they have reached final agreement on the acquisition of major assets of Micro Flo Co., a wholly owned subsidiary of BASF Corp., Florham Park, N.J. The acquisition will significantly broaden the scope of Arysta LifeScience’s North American sales operations and create a strategic position in the U.S. crop protection segment. Closing of the transaction is expected by the end of the first quarter 2006 pending customary regulatory approvals. Both companies agreed not to disclose financial details of the transaction.

Micro Flo, with headquarters in Memphis, Tenn., and a formulation site in Sparks, Ga., is a leading manufacturer and distributor of off-patent crop protection chemicals and offers a variety of manufacturing and distribution services. This includes wholesale distributorships for fungicides, herbicides, insecticides, and plant growth regulating agents. Micro Flo has relationships with the major U.S.-based agricultural distribution networks.

Under the agreement, Arysta LifeScience North America Corp. will acquire the commercial business of Micro Flo, including a portfolio of active ingredients and registrations, the Micro Flo trademark, patents and the development laboratory located in Sparks. BASF will continue to own and operate the formulation production facility in Sparks. Arysta LifeScience will be an important customer for BASF, and long-term agreements will ensure continuity for the supply of the Micro Flo products sourced from BASF. With the exception of the employees at the Sparks manufacturing site who will remain with BASF, all Micro Flo personnel will be offered equivalent positions with Arysta LifeScience, including the development laboratory staff at the Sparks facility.

Dr. Christopher Richards, Arysta LifeScience president and CEO, said the acquisition is another key element of the company’s long-term growth strategy. “With this acquisition, Arysta LifeScience gains a solid range of products, a proven U.S. distribution network and a capable and experienced sales force with excellent customer relationships,” Richards said. “Micro Flo is highly regarded for its portfolio of products and its customer service focus. Adding Micro Flo’s operations to our existing presence in North America will give Arysta LifeScience a substantially stronger platform for future growth in the region.”

Bill Lewis, regional head of Arysta LifeScience North America is also pleased with the arrangement. “We are proud to welcome the Micro Flo team to the Arysta LifeScience family,” Lewis said. “Micro Flo’s strength in off-patent products complements our existing portfolio of strong proprietary, off-patent and third-party products. This combination will provide a compelling product range that will meet the needs of all our customers.”

The divestiture is part of BASF Agricultural Products division’s strategy of continuously evaluating its product portfolio and its asset structure. “As a leader in innovation, we have identified some products and assets that offer limited synergy for us, but are clearly a better strategic fit for a specialized company, such as the Micro Flo business with Arysta,” said Mike Heinz, president of BASF’s Agricultural Products division. “I’m convinced that the transition will be smooth. It will benefit our customers in the North American agricultural industry by enabling us to better focus our resources on bringing innovation to that market.”

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