Sumitomo Chemical increases ownership stake in pest control producer MGK to 76.36% from 32.88%, says move strengthens its presence in North American environmental health markets, will enable faster product innovations for MGK
December 18, 2012
– Sumitomo Chemical Co., Ltd. today announced that McLaughlin Gormley King Company (MGK) has become a consolidated subsidiary of Sumitomo Chemical, which acquired a majority stake in MGK.
Sumitomo Chemical purchase of additional MGK shares raises its ownership stake in MGK to 76.36 percent, up from 32.88 percent—following an agreement with the Gullickson family, the founders and previous majority shareholders of MGK. Sumitomo Chemical made its first share participation in MGK in 1989. The move strengthens Sumitomo Chemical’s presence in North American environmental health markets, and will enable faster product innovations for 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 Chemical. “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. 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.”
MGK, founded in 1902, is engaged in the manufacture and sale of insect control products and technologies in North America. The firm has distributed Sumitomo Chemical insecticide products for household and public health uses for more than 30 years.
With the additional share acquisition, Sumitomo Chemical will further cooperate with MGK to realize synergies within the Sumitomo Chemical group, including collective research and development activities to more rapidly bring innovative technologies to market.
About Sumitomo Chemical Co., Ltd.
Sumitomo Chemical is one of Japan’s leading chemical companies, offering a diverse range of products globally in the fields of basic chemicals, petrochemicals, IT-related chemicals and materials, health and crop science products, and pharmaceuticals. The company’s consolidated net sales for fiscal 2011 were 1.95 trillion yen. For additional information, please visit the company’s website at www.sumitomo-chem.co.jp/english/.
About McLaughlin Gormley King Company
Founded in 1902 and based in Minnesota, MGK sells insect control products into consumer home and pet products, professional pest control, animal health, and other markets. MGK is a leader in the development and distribution of wide range of insect control technologies. MGK holds 253 product registrations with the U.S. EPA for insect control products, and sells its products into more than 60 countries.