) Bayer CropScience recently signed an agreement to acquire
Prophyta GmbH which develops, produces and markets biological
products, processes and services for integrated crop
Headquartered at Malchow on the island of Poel, Prophyta
manufactures its products at Wismar, Germany.
Prophyta's key product is Contans which is a biological plant
protection product almost like a pesticide.
The acquisition seems a strategic fit for the company as it
complements the existing portfolio and will enable Bayer to offer
an integrated crop solutions based on high-value seeds,
innovative crop protection solutions and customized
The financial terms of the deal were not disclosed. Bayer
CropScience expects to close the acquisition in a few weeks.
In addition, the acquisition will enable Bayer CropScience
to further leverage its technology platform acquired through
Athenix Corporation and AgraQuest.
We note that Bayer has been quite active on the acquisition
front lately. In Aug, the CropScience unit of the company
acquired AgraQuest, Inc., formerly a global supplier of
innovative biological pest management solutions, for $425 million
(approximately €340 million) in addition to milestone
The acquisition has boosted Bayer's fruits and vegetables
business while building a strong technology platform based on
More recently, the HealthCare unit of Bayer AG received
necessary regulatory approval from the Federal Trade Commission
to complete its acquisition of
Teva Pharmaceutical Industries Limited's
) animal health unit in the US.
In Sep 2012, Bayer had announced that in a bid to diversify
its business and expand its animal health business, it inked a
deal with Teva to buy its animal health unit.
As per the deal, Bayer will be paying $145 million, including
an upfront payment of $60 million along with a total of $85
million in milestone payments on the successful and timely
achievement of manufacturing and sales targets. The deal will
also give Bayer access to Teva's 300-employee manufacturing site
at St. Joseph.
We view the acquisitions as positive and reiterate our Neutral
recommendation on Bayer which carries a Zacks Rank #3 (Hold).
) looks attractive with a Zacks Rank #2 (Buy).
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