Specialty and agricultural products company American Vanguard Corp., Newport Beach, Calif., on Jan. 10 announced the acquisition of two affiliated Brazilian limited liability companies, Agrovant and Defensive. American Vanguard said these combined businesses have become a rapidly growing supplier of crop protection products and micronutrients, with annual sales of approximately $20 million and a primary focus on the fruit and vegetable market segments. Financial terms of the transaction were not disclosed.
“Our acquisition of Agrovant and Defensive expands our access to the Brazilian agricultural sector, which at approximately $9 billion ranks as the largest crop protection market in the world,” said Eric Wintemute, American Vanguard CEO and chairman. “Similar to our expansion in Central America following the acquisition of Grupo AgriCenter in late 2017, this transaction provides American Vanguard with a solid platform for marketing AMVAC products, distributing products from third-party manufacturers, and providing support for the introduction of SIMPAS™ prescription planting systems in South America.”
Wintemute said the distribution franchise, located in the province of Sao Paulo, consists of 35 full-time employees, complemented by a group of experienced commissioned sales agents. John Redfern, the current CEO of Agrovant/Defensive, will remain directly involved in the business through 2021.
“Company management has been highly successful at driving significant revenue and earnings growth, while maintaining excellent control of working capital, credit risk, and debt financing,” Wintemute said. “In addition to Agrovant/Defensive’s existing strong position in fruits and vegetables, the company will continue its penetration of the extensive Brazilian soybean market. We also expect expanded involvement in the corn, cotton, and sugar cane segments, as well as the high-margin, fast-growing $2 billion micronutrients market.”