Sumitomo Chemical Acquires Botanical Resources

Botanical Resources, an Australian firm that specializes in growing insecticidal compounds for pest control in Sydney and anywhere else in Australia,recently managed to close a deal that granted majority stockholder status to the Japan-based Sumitomo Chemical.

The Japanese company recently acquired 82.9% of Botanical Resources’ shares, in addition to also acquiring affiliated companies belonging to the BRA group from the company’s shareholders. Following this transaction, Botanical Resources, as well as the BRA Group will then operate as a consolidated subsidiary of Sumitomo Chemical.

Botanical Resources is an Ulverstone-based company founded in 1996 by Ian Folder, which he established when he spearheaded a management buyout of CIG’s pyrethrum assets. From there, the BRA Group began.

The BRA Group’s primary specialization is in the production of the insecticidal compound pyrethrin.Pyrethrin is a natural insecticide that is found in the extract of pyrethrum daisies. They function as insecticides by attacking the nervous systems of pests, whilst remaining safe to use due to being harmless to people or animals. Pyrethrin also breaks down in sunlight, making it fairly environmentally friendly as well. The BRA both processes the pyrethrum daisies and grows them in farms, located in Tasmania.

Sumitomo Chemical has recently been reported to be expanding into environmentally friendly agricultural chemicals, and this acquisition seems to part of that. The Japanese company sells its products across 80 countries, with most of its products aimed at protecting people from mosquitoes, known for carrying diseases such as dengue and malaria.

Reports from Japan suggest that the buyout will lead to Sumitomo Chemical full control of the BRA Group’s  production chain that stretches from the pyrethrum daisy farming all the way up to the finished product.  Other reports state that Sumitomo will be seeking ways on how to improve pyrethrum cultivation techniques, as well as seeking out more uses for pyrethrins.

This new collaboration will be focused on developing mixtures with existing chemicals, and creating new mixtures, whilst utilizing Sumitomo’s product line. As part of an extended deal, the two companies will continue their cooperative development programmes.

Tasmania is noted as the world’s largest producer of pryrethrins, which makes the state a key location for pest control in Sydney and the world. The state accounts for one-third of the global market at around 60%-70%. During the last harvest season, there were at least 100 growers across 1500 hectares across the state.