Specialty chemicals maker
) fully-owned unit Amvac Chemical Corporation has extended its
herbicide co-marketing agreement with
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The companies have extended their multi-year collaboration to
jointly market Amvac's post-emergent corn herbicide Impact as
part of the Roundup Ready PLUS weed management platform through
August 2017. Monsanto will continue to license its Roundup Ready
PLUS trademarks for use on Impact. Financial terms of the deal
Under the deal, Impact will be co-promoted by American Vanguard
and Monsanto as the qualifying post-emergent Roundup agricultural
herbicide tank-mix product in the U.S. and will be listed as an
endorsed product in the platform. It will be supported by
Monsanto's extensive corn Incentives.
Impact complements Monsanto's Roundup PowerMAX and Roundup
WeatherMAX herbicides by offering improved control of a range of
broadleaf weeds. The Roundup Ready PLUS platform is geared to
offer corn growers with recommendations of cost-effective and
sustainable weed control products and provide financial
incentives for using many of these products.
The collaboration offers Amvac with the opportunity to boost
sales of its Impact herbicide. Moreover, it offers Monsanto with
more effective and comprehensive control for its Roundup
herbicides and provides the U.S. corn grower with the opportunity
to maximize yield.
American Vanguard makes specialty chemical products for
agricultural and commercial applications. The company develops
and markets an array of chemicals, including insecticides,
fungicides and herbicides, for crops, human and animal health
protection. American Vanguard has the largest assortment of corn
soil insecticides coupled with the most advanced dispensing
American Vanguard's first-quarter 2013 profit nearly doubled on
the back of strong market demand for its corn herbicide and
insecticide products. It posted a profit of $16.9 million in the
reported quarter, a 94% surge from a profit of $8.7 million
recorded a year ago.
Revenues shot up 39% year over year to $121.5 million in the
reported quarter, buoyed by strong adoption of American
Vanguard's granular soil insecticides and Impact herbicide in the
domestic corn market.
American Vanguard is optimistic about 2013 and feels that it is
well placed to meet the increasing demand for soil insecticides
by maintaining full production of its products and proprietary
equipment systems. The company should also benefit from its
herbicide collaboration with Monsanto.
American Vanguard currently carries a Zacks Rank #1 (Strong Buy).
Other companies in the specialty chemicals industry with
favorable Zacks Rank are
OM Group Inc.
). Both retains a Zacks Rank #2 (Buy).