​The agrochemical industry has been buzzing with news of two recent acquisitions that have been announced in the past few months. In November of last year, Corteva, a leading agrochemical company, announced its plans to acquire the Stoller Group for $1.2 Billion, while Valent Biosciences, a subsidiary of Valent, announced in late January that it has acquired FBSciences. These acquisitions may have significant implications for the agrochemicals industry and are worth taking a closer look at.
 
Stoller Group, founded in the 1960s, is a Houston-based agrochemical company that specializes in plant nutrition, biologicals, and growth regulators. Corteva, formerly the agriculture division of DowDuPont, has been expanding its presence in the biologicals sector (Corteva announced in September, its planned acquisition of Spain-based Symborg), and the acquisition of Stoller Group is a significant step in this direction. The acquisition allows Corteva to expand its offerings in the plant nutrition space and strengthen its position in the biologicals and plant health space. Corteva has a history of acquiring companies that provide complementary products and services to enhance their offerings.
 
According to some industry analysts, the Stoller acquisition is a smart move that will help the company stay ahead of the curve in the agrochemical market. It brings together Corteva's expertise in crop protection and Stoller Group's knowledge in plant nutrition creating a formidable force in the industry. Crop protection manufacturers have sometimes stumbled in understanding and demonstrating success in the crop nutrition market, but the acquisition of Stoller Group by Corteva may be a step in the right direction, particularly, if Corteva does not attempt to fully integrate the businesses.
 
FBSciences, based in Tennessee, is an innovative provider of biological-based crop protection, plant health, and nutrition products. Valent's acquisition of FBS Sciences expands its offerings in the biologicals and specialty crop nutrition space and helps the company strengthen its position in the industry. The acquisition will allow Valent to provide its customers with a wider range of solutions and enhance its competitiveness in the agrochemical market.
 
Some industry experts believe that Valent's acquisition of FBSciences is a strategic move that will help the company meet the growing demand for sustainable and eco-friendly solutions in the industry and help drive the development of new technologies and products.
 
Certainly, both deals send the signal that the big crop protection companies are on the hunt to enter or expand their product and business portfolios to include biologicals, specialty crop nutrition, and more eco-friendly solutions to their customer base.
 
By combining their expertise in crop protection and plant nutrition, Corteva and Valent are positioning themselves to be leaders in the agrochemical industry, but others believe there to be potential drawbacks. Previous acquisitions in the biologicals and crop nutrition space by the large agrochemical companies, such as the Syngenta-Valagro deal in 2020, have received mixed reviews from the industry.  Wisely, Syngenta continues to operate Valagro with a distinct go-to-market strategy and the resources it can provide in R&D and for new product development will likely overcome any stumbles it has had so far.
 
The integration process can be complex and challenging, especially where the products and services offered by the acquired crop nutrition companies can be highly specialized.
 
Furthermore, combining two companies also involves bringing together two distinct cultures, which can be a challenge. Employees from both companies have different expertise, beliefs, and values, which can lead to tension and conflict. This can negatively impact the morale and productivity of employees, and ultimately, the success of the acquisition.
 
Nevertheless, the recent acquisition announcements are significant developments in the agrochemical industry and at the very least, will allow the respective acquirers to expand their offerings and provide customers with a wider range of solutions.  However, it remains to be seen whether the big agrochemical giants will successfully navigate through all the nuances inherent in the specialty crop nutrition and biologicals space.