ECOGEN COMPLETES ACQUISITION OF SCENTRY, INC.
ECOGEN COMPLETES ACQUISITION OF SCENTRY, INC. LANGHORNE, Pa., Sept. 16 /PRNewswire/ -- Ecogen Inc. (NASDAQ: EECN)
today announced it has completed its acquisition of the pheromone business of Scentry, Inc., a wholly owned subsidiary of United Agri Products (UAP), Inc., which is owned by ConAgra, Inc. (NYSE: CAG). The acquisition included a three-year non-exclusive distribution agreement with UAP to purchase and distribute Scentry's pheromone-based products from Ecogen.
"We are very pleased to complete this acquisition," said John E. Davies, chairman and chief executive officer. "The Scentry products based on pheromone technology are a valuable addition to our current product line, and we believe significant opportunities exist for market growth worldwide." Scentry's pheromone-based products utilize natural odors, undetectable to humans, that are emitted by insects. Pheromones have broad agricultural applications and can be used alone or in conjunction with pesticides. Pheromones can be used to control insect populations by disrupting the mating process. They can also attract insects to pesticides, increasing effectiveness of insect control while reducing the amount of chemical pesticide required. Ecogen will also explore opportunities for use of pheromones in combination with its biological pesticides. Scentry's products are used to control pests of significant agricultural importance such as the pink bollworm on cotton and the tomato pinworm on tomatoes. Other products include an array of pheromone lures and traps to monitor the presence of various insect pests on vegetables, cotton and fruit trees to permit timely application of pesticides. Another product, BeeScent(TM), is used to attract honey bees to crops, thereby increasing pollination. A new product, Compel(R), which controls the corn rootworm, is in the final stages of development. The corn rootworm market, which generates more than $140 million annually, is the single largest insecticide market in the United States. Corn rootworms destroy an estimated $1 billion in crops each year. Scentry sold $2.4 million in pheromone products last year. The current market for pheromone-based insect products is approximately $60 million worldwide. Ecogen paid $5 million for Scentry's assets, comprised of $3 million in cash plus 293,907 shares of Ecogen common stock valued at market. Ecogen, Inc. is an agricultural biotechnology company specializing in biological pest control. Ecogen has developed and is marketing a number of novel and proprietary biopesticides, including Cutlass(R) bioinsecticide for vegetables and tree, nut and vine crops, Condor(R) bioinsecticide for vegetables, cotton and soybeans, Foil(R) potato bioinsecticide, Otinem(TM) bioinsecticide and Collego(R) rice bioherbicide. The company is also developing products for corn, home/garden and ornamental use as well as biofungicides including products for the control of powdery mildew and post harvest rot diseases. NOTE: Cutlass, Condor, Foil, Compel, BeeScent, Otinem and Collego are trademarks of Ecogen, Inc. -0- 9/16/92 /CONTACT: John E. Davies, chairman and CEO of Ecogen, 215-757-1590; or Anthony J. Russo of Noonan/Russo Communications (media), 212-979-9180, or Donald C. Weinberger of Strategic Growth International (investors), 212-826-9622, both for Ecogen/ (EECN CAG) CO: Ecogen Inc.; Scentry, Inc.; United Agri Products, Inc.; ConAgra, Inc. ST: Pennsylvania IN: MTC SU: TNM
GK-TS -- NY032 -- 0075 09/16/92 11:41 EDT
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|Date:||Sep 16, 1992|
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