Marrone (NASDAQ:MBII) has completed the acquisition of Pro Farm Technologies, a company with which they had previously signed an agreement to collaborate on the use of each other’s products.
Pro Farm has developed plant nutrients based on lignins that are a secondary byproducts of paper production. Using these organic polymers, together with other materials such as fulvic acid (a product of humus decomposition), to form molecular bonds with trace elements essential for plant growth, Pro Farm has developed seed treatments and foliar (leaf) treatments that are compatible with Marrone’s stable of pesticides.
The cost is $6.2 million in cash, 12.7 shares of common stock and earn outs of up to $7.5 million. No financials for Pro Farm are available but the acquisition is expected to be accretive to revenue and earnings in 2020.
Pro Farm and Corteva Agriscience had announced a commercial agreement in Europe to commercialize Pro Farm’s seed treatments. Products for maize (corn), sunflower and rape oil (Canola oil; used extensively for the production of bio diesel in Europe) will be launched in the next growing season targeted at over 2.4701 million acres.
Other product acquisitions include those of Jet Ag and Jet Oxide, a line of disinfectants based on the strong oxidizing agent, peracetic acid. This is commonly used in greenhouses and irrigation systems and for the treatment of plants in post harvest markets. The cost was $2.5 million.
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