Management buy out at Incotec International

Enkhuizen, The Netherlands
January 18, 2002

The Management of Incotec International has acquired, through a so-called Management Buy Out, the enterprise from the Nasdaq-listed Seminis Vegetable Seeds (NASD: SMNS). Partner in the Buy Out is Investment Company NeSBIC Investment Fund II that will have an interest in the enterprise. An amount of 21 million Euro is involved in the investment. The management and NeSBIC will collaborate in the further development and expansion of the enterprise. Seminis decided to sell the company based on the fact that Incotec is not seen as its core activity anymore.

Incotec is a worldwide market leader in the field of coating and seed technology. As in its natural form seed is often too small or irregular in shape, making it difficult to sow. By adding certain coatings the seeds are made more suitable for precision sowing. Additionally, the company possesses technologies to improve seed quality, for instance lettuce seed is made suitable to germinate at higher temperatures, which can be very important under warm climate conditions. Furthermore, together with special developed coatings methods can be added to the seed to protect the crop against diseases resulting in a lower usage of pesticides by growers.

"The reason why we decided to invest in Incotec is because of the chosen strategy, the market position and the potential of the enterprise in combination with the quality of the management. The company benefits of an experienced team of managers and besides Incotec is an established name and a profit making enterprise", says Ron Maurer, managing partner of the NesBIC Investment fund. In the past years, the group has experienced consistent revenue raising up to 20 million Euro as of 30 September 2001.

General Manager Jan Willem Breukink says: "This Buy Out will provide the company the opportunity to carry on growing on its own. Together with the investor we shall work towards autonomous growth and we possess the know-how and the means to also take over companies that match within our strategy. In the coming years we expect to achieve a further accelerated growth of Incotec at world scale.

The market for treatment and improvement of seeds will expectedly grow considerably in the coming years. Agreements have been made that Seminis will remain a client of Incotec. Incotec counts two hundred employees. The Buy Out has no consequences for employment. Next to the location in Enkhuizen, the company has production facilities in the United States, Brazil and Japan.

For more information please contact:
Incotec International BV
Jan Willem Breukink
+31 228 358053
website: www.incotec.com

Company news release
4116

OTHER NEWS RELEASES FROM THIS COMPANY

Copyright © 2002 SeedQuest - All rights reserved