Monsanto to acquire Seminis in $1.4 billion deal
Monsanto to acquire Seminis in $1.4 billion deal
Agricultural products giant Monsanto Co. announced Jan. 24 that it will acquire fruit and vegetable seed company Seminis for about $1 billion in cash plus the assumption of $400 million in debt.
The move is seen as a way for Monsanto to capitalize on the healthy-eating trend and enhance its portfolio of seed operations. Oxnard, CA-based Seminis supplies more than 3,500 seed varieties to the commercial fruit and vegetable industry in more than 150 countries around the world. The seeds that Seminis develops and produces are designed to reduce the need for agricultural chemicals, increase crop yield, reduce spoilage and offer longer shelf life.
?This is a strong-performing seed business that is generating good returns and has solid growth prospects," Hugh Grant, Monsanto?s chairman, president and CEO, said in a statement. "In the medium term, there is strong potential for the Seminis business to benefit from the breakthroughs our people have made in plant breeding."
Monsanto, a leading developer of genetic modifications for crops like soybeans and corn, said that it intends to continue the Seminis strategy of developing products through advanced breeding techniques; over the longer term, biotechnology applications could be an option.
Monsanto has been shifting its business focus from the highly competitive herbicide chemical business to the seed industry, where Monsanto has been seeing strong growth, reported Reuters. In late 2004, Monsanto created a new subsidiary called American Seeds Inc. and bought regional seed business ChannelBio Corp. of Kentland, IN.
Bruno Ferrari, president and chief operating officer of Seminis, will continue to lead Seminis, which is expected to become a wholly owned subsidiary of Monsanto when the acquisition is completed.
Seminis will continue to operate under the Seminis name.
The move is seen as a way for Monsanto to capitalize on the healthy-eating trend and enhance its portfolio of seed operations. Oxnard, CA-based Seminis supplies more than 3,500 seed varieties to the commercial fruit and vegetable industry in more than 150 countries around the world. The seeds that Seminis develops and produces are designed to reduce the need for agricultural chemicals, increase crop yield, reduce spoilage and offer longer shelf life.
?This is a strong-performing seed business that is generating good returns and has solid growth prospects," Hugh Grant, Monsanto?s chairman, president and CEO, said in a statement. "In the medium term, there is strong potential for the Seminis business to benefit from the breakthroughs our people have made in plant breeding."
Monsanto, a leading developer of genetic modifications for crops like soybeans and corn, said that it intends to continue the Seminis strategy of developing products through advanced breeding techniques; over the longer term, biotechnology applications could be an option.
Monsanto has been shifting its business focus from the highly competitive herbicide chemical business to the seed industry, where Monsanto has been seeing strong growth, reported Reuters. In late 2004, Monsanto created a new subsidiary called American Seeds Inc. and bought regional seed business ChannelBio Corp. of Kentland, IN.
Bruno Ferrari, president and chief operating officer of Seminis, will continue to lead Seminis, which is expected to become a wholly owned subsidiary of Monsanto when the acquisition is completed.
Seminis will continue to operate under the Seminis name.
