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Mycogen Corp. has acquired controlling interest in the nation's sixth-largest seed company in a deal that further diversifies the local biotech company.
The acquisition fits well with Mycogen's core business of producing natural pesticides, analysts said. Agrigenetics Co., a division of Ohio-based Lubrizol Corp., conducts plant biotechnology research.
"Agrigenetics is bringing along some really strong technology," said George Dahlman, an analyst for the Minneapolis-based brokerage firm Piper Jaffray & Hopwood. "The fit is very synergistic."
Mycogen adds Agrigenetics to its growing portfolio, which now includes a crop protection company, an animal healthcare division and an international sales division. Despite the wide range of activity, analysts say Mycogen is up to the task.
"It isn't as if they were not related," said James McCamant, editor of the Berkeley-based AgBiotech Stock Letter, about Agrigenetics and Mycogen.
"It is a challenge," he added. "However, they have good management spearheading it. Personally, I think they'll do better than Lubrizol. There's nothing like a little entrepreneurially driven motivation."
Richard Bock, senior vice president of investments...