Calgene Inc. said Monday that it has acquired for less than $5million Hodag Chemical Corp., which Calgene considers its ticketinto oleochemical production.

Hodag, a specialty manufacturer based in Skokie, Ill., will bemerged with Calgene Chemical, Calgene's oleochemicalmarketing company, and will operate under the CalgeneChemical name.

Hodag manufactures a broad line of specialty esters,surfactants, ethoxylates and other vegetable oil-basedingredients for the food, cosmetic, soap and detergent, sugar,lubricant and textile markets. It has 55 employees andbetween $6 million and $10 million in annual sales.

The acquisition "will enable us to realize maximum value fromour investments in vegetable oil genetic engineering," saidFrank Flider, Calgene Chemical's general manager. "Hodag alsogives us in-house production capabilities for our growing lineof non-genetically engineered rapeseed-based esters,oleochemicals and biodegradable lubricants."

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