Sumitomo Chemical said on Jan. 31 that it has decided to acquire FBSciences Holdings Inc., Collierville, Tenn., a US company engaged in the business of biostimulants, a group of naturally-derived agricultural materials and a class of biorationals. Sumitomo is making the acquisition via its US-based subsidiary Valent BioSciences LLC, Libertyville, Ill.
Sumitomo said it regards this acquisition as a step toward full-scale entry into the biostimulant field. It said it will strive to further expand its biorational business by combining its global footprint and resources with FBS’s product portfolio and technological know-how, while also seeking to create new synergies between biorationals and conventional crop protection products.
“The acquisition of FBSciences is a natural next step in the evolution of our organization as a global leader in biorationals, including biostimulants,” said Ted Melnik, President and CEO of Valent BioSciences. “Our combined organizations have many decades of experience leading our respective markets with science-based technology and innovation.
“The wide range of biostimulant, biopesticide, and crop nutrition products and technologies in the FBSciences portfolio augments Valent BioSciences’ broad family of biorational products, thereby creating an unmatched range of value-added and sustainable solutions that no other company can provide,” he added.
Valent began selling biostimulant products directly to its US customer base in October 2022.
FBS develops, manufactures, and markets biostimulants and biopesticides made from natural organic matter sourced and processed with its proprietary methods. It said its products and technologies are applicable to more than 50 different crops as proven with extensive field trial data, and with over a decade of commercial success, the company has been rapidly growing its business in recent years, particularly in the US.
The FBS flagship biostimulant technology, FBS Transit®, forms the foundation of its crop nutrition and nutrient use efficiency product lines for use on all crops. It works inside the plant to increase the uptake and translocation of all nutrients, leading to healthier plants that can withstand stress, which results in increased yields and quality.
FBSciences’ biopesticide technology, FBS Defense™, works within the plant to increase its ability to defend itself from biotic stresses, including insects and diseases, and increases harvestable yields.
Sumitomo defines microbial pesticides, plant growth regulators, and rhizosphere microbial products derived from natural sources, as well as solutions using these products to protect crops from pests and enhance crop quality and yield, as biorationals.
Sumitomo said biorationals have a global market value at about $10 billion, about one-tenth that of agricultural chemicals, with expectations to see continued demand growth as the need for crop protection products with lower environmental impact increases among growers and consumers. Sumitomo sees biostimulants as the largest segment of biorationals and values that market at $3.5 billion, with it growing at double-digit rates.
Sumitomo noted that it has been exploring the potential of biorationals for some time, having acquired the biorationals business of US-based Abbott Laboratories Inc. in 2000. Since then, it has continued to strengthen and expand the business, with its US subsidiary Valent at the core of the effort.
In recent years, it has accelerated strategic measures to enhance its operations in this area, including building a production plant for active ingredients for microbial crop protection products in the US in 2014, acquiring a US rhizosphere microbials business in 2015, opening a biorational research center in 2018, and launching dedicated biorationals sales organizations at the company’s major overseas locations in 2020.