Corteva, Inc.and Stoller Group, Inc. signed a definitive agreement to acquire Houston-based Stoller, one of the largest independent biological companies in the industry. Stoller has operations and sales in more than 60 countries and expected 2022 revenues of more than $400 million.
Corteva will pay $1.2 billion in cash for the company. Corteva is the combination of Dow and DuPont agribusinesses and, until fairly recently was based near Wilmington. it is now headquartered in Indianapolis, but has a corporate presence in Wilmington.
“Biologicals provide farmers with sustainably-advantaged tools that complement crop protection techn,ologies, and collectively, can work to address global challenges around food security and climate change. Stoller represents a leader in the Biologicals industry given its commercial presence and market expansion potential, while also delivering attractive growth and operating margins,” said Corteva CEO Chuck Magro. “In combination with Corteva’s leading innovation organization, Stoller provides a platform for expanding and accelerating Corteva’s Biologicals business to become one of the largest players in the rapidly expanding Biologicals market.”
Under Magro, Corteva has beefed up its biologicals business while planning to reduce staff and shedding some business units.
Biologicals are crop protection products that come out of naturally occurring microorganisms, beneficial insects and other natural sources.
The Biologicals market is expected to grow high-single digits annually through 2035 representing approximately 25% of the overall crop protection market that time.In three years, Corteva has developed a Biologicals business
“In Stoller’s 50+ year history, we have successfully helped growers around the world increase their productivity and improve their sustainability. We are proud to join forces with Corteva as we share a vision of helping farmers succeed in growing the nutritious food the world relies on,” said Guillermo de la Borda, Chief Executive Officer of Stoller. “This announcement is a true testament to the incredible success and dedication of our teams across the globe who have helped us become one of the most trusted biostimulant and plant health companies in the world. Our innovative solutions and deep expertise will continue to make an impact for years to come.”
Stoller is the second Biologicals acquisition for Corteva this year, as the company recently announced it signed a definitive agreement to acquire Symborg, an expert in microbiological technologies based in Murcia, Spain. Corteva will bring together the complementary commercial and technical strengths of Stoller and Symborg as part of its Biologicals strategy.
The Stoller purchase price of $1.2 billion in cash will be paid at closing, which is anticipated to be completed in the first half of 2023 following regulatory approvals and customary closing conditions. The company expects that Stoller results will add to earnings
