Monsanto has signed an agreement to acquire Seminis for $1.4 billion in cash and assumed debt.
The agreement also includes a performance-based payment of up to $125 million payable by the end of fiscal year 2007.
“The addition of Seminis will be an excellent fit for our company as global production of vegetables and fruits, and the trend toward healthier diets, has been growing steadily over the past several years,” said Monsanto chairman, president, and CEO, Hugh Grant. “Seminis is uniquely positioned to capitalize on this fast-growing segment of agriculture, and the acquisition likewise expands Monsanto’s ability to grow. We look forward to furthering the growth and leadership position established by Alfonso Romo and his team as the Seminis business is an important extension to our agricultural seeds platform.”
“Ten years ago, we established Seminis with the vision of building the world’s market leader in the vegetable and fruit seed industry. Through the support of our management team, we successfully built a research and marketing platform to serve growers, food companies and consumers,” said Alfonso Romo, current chairman and CEO of Seminis. “I believe Seminis can continue to realize this vision and achieve its full potential as part of Monsanto. We are bringing a complementary technology base and specialized expertise that can not only support economic growth for farmers, but contribute to the health and nutrition of consumers on a global scale.”
The acquisition is expected to be accretive to earnings per share, cash flow and revenue growth in fiscal year 2006, its first full year of operation. The transaction is expected to close in Monsanto’s third-quarter 2005 fiscal year, pending regulatory approvals.
Murdok | Breaking eBusiness News
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