Sumitomo Boosts Stake in North American Insect Control Market
18 December 2012 Sumitomo Chemical picked up a majority stake in MGK, a Minneapolis, Minnesota-based maker of insect control technologies in a bid to boost the Japanese chemical giant’s interest in the North American market.
Sumitomo – which posted $23.7 billion in sales in 2011 – has partnered with MGK since the 1970s, and it first became a shareholder in 1989. The most recent share purchase raises its ownership stake in MGK to 76.36%, up from 32.88% following an agreement with the Gullickson family, the founders and previous majority shareholders of MGK.
“North America is one of the most important markets for household and public health insect control products and is of vital importance to Sumitomo Chemical’s global Environmental Health business sector,” said Ryo Sato, executive officer of Sumitomo.
“Similarly, MGK is a long-standing, well-respected provider of professional pest control products and technologies—making it an ideal partner to channel branded Sumitomo Chemical products in this segment,” Sato continued. “We believe this collaboration will strengthen both companies, will allow Sumitomo Chemical to more easily introduce new and necessary technologies into North American pest control and will ultimately improve the offerings and service we provide for the MGK customers.”
MGK’s business will continue to be based in Minneapolis, under the leadership of current President Steven M. Gullickson. According to Gullickson, “We see a tremendous upside for MGK’s ongoing business which will be good for our customers, our business and our employees. Sumitomo Chemical and MGK view this as an opportunity to leverage both companies’ strengths.”
“We’re pleased that Mr. Gullickson has agreed to continue to serve MGK in his current role. He has led his company to strong growth in the past decade, and we look forward to his continued leadership,” Sato said.
MGK said it is one of the first companies to commercially develop naturally-derived pyrethrum into insecticide. MGK and its subsidiaries employ 250 people at its facilities in North America, Europe, Africa and Australia.
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