Sumitomo Chemical will acquire drugmaker Kyowa Hakko Kirin’s agrochemical operations, aiming to gain know-how in a fast-growing field, according to an article on Asia.Nikkei.com.
The purchase, valued at 6 billion yen to 7 billion yen ($54.5 million to $63.6 million), is slated for completion by next March.
The agrochemical business, run by subsidiary Kyowa Hakko Bio, reportedly logs annual sales of more than 1 billion yen. Sumitomo Chemical will take in 10 to 20 employees from the operation, but production facilities will remain under Kyowa Hakko’s wing.
The business’ mainstay product is gibberellin, a plant-growth regulator used to create seedless grapes by inhibiting seed development. Sumitomo Chemical also sells the product, but Kyowa Hakko Kirin has more expertise and experience in tailoring the application for different fruit trees.