More than holding its own

Farm Chemicals, Mar 2001 by Moore, Jim

Valent U.S.A., a mid-sized company, is prospering in today's "big time" crop protection market.

"PRODUCTS that work from people who care - that defines us," says Mike J. Borel, president and chief operating officer of Valent U.S.A. Corp., Walnut Creek, CA.

In an era when the number of ag- them companies is shrinking due to mergers and acquisitions, Borel says Valent proves a company doesn't have to be a giant to be successful.

"We're successful," says Borel. "We rang all the bells in 2000 by achieving revenue and profit goals. We also achieved our major objectives in 1999, and I believe we are one of the few companies that can say that."

Merger Power

The future growth of Valent was outlined when Sumitomo Chemical Co. decided to merge the North American sales and marketing arms of Valent and Valent BioSciences Corp. (VBC) at the beginning of the year. Sumitomo is the parent of both companies. VBC was created when Valent acquired the entire current and in-development line of naturally occurring biopesticides, plant growth regulators (PGRs), and other products for agriculture, public health, and forestry from Abbott Laboratories in Jan. 2000.

Now Valent is in charge of selling and marketing the company's entire line of herbicides, insectitides, bioinsecticides, fungicides, and PGRs for agricultural, horticultural, turf, ornamental, and professional pest control markets.

But in this era of mega-mergers and acquisitions, Valent, at about $200 million in annual sales and 270 employees, is still a mid-sized company in a sea of much bigger fish. Could Valent be setting itself up for acquisition?

Not according to Borel. A key component in Valent's future is to continue a selective acquisition strategy. "We are not trying to become a giant," says Borel. "We are looking for technology and companies that complement and/or enhance our portfolio and direction."

Areas Of Growth

Borel says Valent's top growth areas include products for the fruit, vegetable, turf, and ornamental markets. At the same time, the company will continue developing and marketing products for input-- intensive row crops and the mega-- acreage row crops.

Valent's top products include Select, DiPel, Orthene, Knack, ProGibb, and ReTain.

Select, a postemergence herbicide for controlling grass in broadleaf crops, became the top product in this area for soybeans during 2000 - in addition to its established No. 1 position in cotton and sugar beets.

DiPel is the leading Bacillus thuringiensis (Bt) insecticide for controlling 55 species of insects on more than 200 row, vegetable, and fruit crops.

Orthene is a popular non-restricted insecticide commonly used for insect control on cotton, peanuts, tobacco, and vegetables.

Knack, an insect growth regulator, has proved effective for breaking the life cycle of sweetpotato and silverleaf whiteflies in cotton, tomatoes, and peppers. EPA has classified Knack as a "safer pesticide" making it a good fit in IPM programs.

ProGibb is a highly effective PGR for use in seedless table grapes, citrus, cherries, and many other fruit and vegetable crops.

ReTain is a PGR designed as a harvest management tool for apple and pear production.

Currently, Valent is working on seven new active ingredients, all of which they hope to have on the market in the next five years.

Valor, a pre emergence herbicide for soybeans and peanuts, is in the final stages of EPA registration and may be available for a limited launch in 2001.

Also coming down the road are Regiment (a rice herbicide) and a plant growth regulator for grapes. The unnamed PGR, says Borel, has potential in numerous fruit crops.

While Valent does not take the "something for everybody" approach, Borel notes, "Our goal is to be the best company delivering integrated solutions to our customers."

Moore is International Editor, American Fruit Grower and American Vegetable Grower, both Meister publications.