Thermo Ecotek to buy Grace's Columbia unit

Maryland Watch

March 07, 1996

W. R. Grace & Co. has agreed to sell its division in Columbia, which makes insect-control products from botanical extracts, to a New England company for $7 million plus a royalty on future sales.

The buyer, Thermo Ecotek Corp. of Waltham, Mass., said it plans to keep the operation and the 21 employees of the biopesticides unit in Columbia after the sale.

Under the deal, publicly held Thermo Ecotek, which designs and operates electric power generation facilities, will pay W. R. Grace the $7 million plus an annual sales royalty of 7 percent on sales above $14 million. The royalty arrangement ends in 2000.

The biopesticides unit, Grace executives said, generated about $3.7 million in 1995 sales. The unit develops products from seed extracts and microbials that control insect damage to crops.

Brian D. Holt, Thermo Ecotek's president and chief executive officer, said his company decided to purchase the biopesticides unit to diversify beyond the biomass power generation business.

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The deal is subject to regulatory and related approvals.

Pub Date: 3/07/96

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