Marrone Bio acquires Jet Ag, Jet Oxide product lines for approx. $2.5M
Marrone Bio Innovations has acquired from Jet Harvest Solutions all rights and assets to the Jet Ag and Jet Oxide product lines. Jet Ag and Jet Oxide are broad-spectrum products used both for control of fungal and bacterial diseases and as disinfectants. The transaction builds on a two-year relationship and prior distribution agreement between Jet Harvest and Marrone Bio. Going forward, the portfolio will be sold through Marrone Bio's existing sales force and distribution network except for the post-harvest business, which has been licensed back to Jet Harvest Solutions. With gross margins in line with Marrone Bio's current portfolio of products, the Jet Ag and Jet Oxide product lines are expected to add to the company's revenues in 2019 and be accretive to earnings within two years. The purchase price for the assets is approximately $2.5M in cash, plus five yearly earn-out payments based on certain sales. In addition, Marrone Bio engaged the founders of Jet Harvest Solutions for a two-year consulting agreement. The products-which are used in specialty agricultural and field crops as well as greenhouse and irrigation applications-are expected to be a strong fit with Marrone Bio's BioUnite strategy. Jet Ag and Jet Oxide also can be used in post-harvest storage fogging, greenhouse surfaces/irrigation systems and agriculture irrigation water and drainage ditches. Jet Ag is one of the leading products in the peroxyacetic acid agriculture, turf, ornamentals and post-harvest markets.