American Vanguard / AMVAC Announce Strategic Integration of Non-crop Specialty Businesses

Rhea-AI Summary

American Vanguard Corporation (NYSE: AVD) announced the integration of its OHP subsidiary into the AMVAC Environmental Products (AEP) framework, enhancing its non-crop business strategy. This move aims to expand product offerings and innovation in the pest management sector. CEO Eric Wintemute highlighted the importance of OHP’s biosolutions as part of a sustainable portfolio. Leadership changes will occur, with Dan Stahl retiring and Troy Bettner taking over commercial responsibilities. The integration aligns with American Vanguard's long-term growth and sustainability goals.

Positive

• Strategic integration of OHP into AEP aims to expand product offerings and innovation.
• Focus on sustainable biosolutions enhances the company's low-impact product portfolio.
• Leadership transition is managed smoothly, ensuring continued operations and customer service.

Negative

• Dan Stahl's retirement may involve transitional challenges for OHP's operations.

American Vanguard^® Corporation (NYSE: AVD) and its subsidiary AMVAC^® Corporation announced today that they are bringing their OHP Inc. subsidiary into the AMVAC Environmental Products (“AEP”) family to create a unified non-crop business entity within AVD.

OHP, the leading provider of technology-based solutions for greenhouse and nursery production applications, was acquired by AMVAC in 2017 to expand its non-crop footprint in the plant production segment.

The integration of OHP and AEP – a leading provider of proven chemistries, biologicals, and low-impact solutions to the professional pest, golf, landscape, and public health markets – is part of AVD’s long-term strategy to grow and re-define its position in non-crop markets through portfolio expansion, innovation, licensing, and acquisition.

Eric Wintemute, Chairman and CEO of American Vanguard, commented, “The integration of our dynamic specialty product businesses is part of the Company’s long-term strategy to increase capacity, broaden product portfolios, and support AEP’s and OHP’s collaborative efforts to develop new biological, biorational, and proven chemistry solutions to the market.”

Mr. Wintemute noted in particular that OHP’s biosolutions for U.S. nursery and ornamental customers are a key part of the Company’s growing portfolio of low-impact platforms in both the U.S. and internationally. “These green and sustainable platforms, combined with our precision application technologies, provide American Vanguard with unique and compelling ESG (environmental, social, and governance) solutions.”

Changes in OHP Leadership

With OHP’s integration come several leadership changes.

Dan Stahl, OHP’s long-time leader and the company’s Vice President/General Manager, is planning to retire from OHP at the end of April. He has worked closely with AEP CEO Shayne M. Wetherall and the extended AEP executive team to facilitate a smooth integration ensuring OHP will continue to deliver excellent products and service to its customers and its channel and supplier partners. A formal announcement of Mr. Stahl’s retirement is forthcoming.

Upon Mr. Stahl’s retirement, Troy Bettner, Vice President of Marketing and Sales for OHP, will continue to lead OHP’s commercial efforts and supplier relationships and will report to Mr. Wetherall. Mr. Bettner joined OHP in 2018 and has worked closely with Mr. Stahl to prepare for this management transition.

Said Mr. Wetherall: “Dan’s many contributions have been pivotal to OHP’s success and have provided the platform for its strategic integration with AEP. With a smooth transition to Troy’s commercial leadership, and in partnership with the AEP team, OHP will continue to deliver excellence to our customers and also deliver on our vision for AEP, which is to be the fastest-growing provider of technology and innovation to the markets we serve.”

Added Mr. Wintemute: “The great opportunities that OHP and AEP present in the non-crops market, coupled with AMVAC’s long-time strengths in the agricultural crops segment, extend and further solidify American Vanguard’s position as a continuing and long-term leader in technology, innovation, and sustainability.”

About OHP

OHP Inc, originally Olympic Horticultural Products, was founded with the goal of becoming the leading provider of technology based pesticide solutions for the greenhouse and nursery production markets. Today, after evolving into its new OHP identity and as an American Vanguard Company, OHP is recognized as the leader in the market. The OHP team exclusively markets products, specifically packaged and labeled for the greenhouse and nursery production markets, through a network of leading distribution partners throughout the United States and Puerto Rico. www.OHP.com

About AMVAC Environmental Products

AMVAC Environmental Products (“AEP”), an American Vanguard Company, is a leading provider of proven chemistries, biologicals, and low-impact solutions to the professional pest, golf, landscape, and public health markets.

About AMVAC Corporation

AMVAC Corporation, a subsidiary of American Vanguard Corporation, is a forward-thinking company fueling growth through customer focus, intelligent acquisition, technology solutions, product development, and supply management. www.AMVAC.com

About American Vanguard

American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. American Vanguard is included on the Russell 2000® and Russell 3000® Indexes and the S&P SmallCap 600^® Index. To learn more about American Vanguard, please reference the Company’s website at www.American-Vanguard.com.

The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that may cause results to differ from management’s current expectations. Such factors include weather conditions, changes in regulatory policy and other risks as detailed from time-to-time in the Company’s SEC reports and filings. All forward-looking statements, if any, in this release represent the Company’s judgment as of the date of this release.

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FAQ

What is the recent news about American Vanguard (AVD)?

American Vanguard announced the integration of its OHP subsidiary into AMVAC Environmental Products to enhance its non-crop business.

Who will lead OHP after Dan Stahl's retirement at American Vanguard (AVD)?

Troy Bettner will take over as the leader of OHP after Dan Stahl's retirement.

What is the significance of integrating OHP into AEP for AVD?

The integration is part of AVD's strategy to expand its non-crop markets, focusing on innovation and sustainable products.

How does the integration of OHP impact American Vanguard's (AVD) sustainability efforts?

The integration enhances American Vanguard's portfolio of sustainable biosolutions, supporting its commitment to environmental, social, and governance (ESG) standards.