BASF Corp., of Ludwigshafen, Germany, plans to acquire Becker Underwood, the Ames, Iowa-based seed treatment company, for $1.02 billion.
The deal includes technologies for biological seed treatment, seed treatment colors and polymers, and coatings, according to a news release.
The purchase is subject to legal review and is expected to be finalized by the end of this year.
Becker Underwood, with 10 production sites worldwide, was owned by Norwest Equity Partners.
Becker Underwood is expecting sales of $240 million for the fiscal year ending Sept. 30.
As part of the deal, BASF's Crop Protection division will create the new Functional Crop Care unit.
The unit will merge BASF's existing research, development and marketing for seed treatment, biological crop protection, plant health, and water and resource management with those of Becker Underwood.