Monsanto Company (NYSE: MON) and Delta and Pine Land Company (NYSE: DLP) announced today that they have signed a definitive agreement whereby Monsanto will acquire Delta and Pine Land Company for $1.5 billion in cash.  The transaction was unanimously approved by the Boards of Directors of both companies and is subject to Delta and Pine Land shareowner approval, antitrust clearance, and customary closing conditions. 

"Delta and Pine Land represents an excellent fit for our company as we look to bring value-added traits and high-quality seed to cotton growers around the world," said Hugh Grant, chairman, president and chief executive officer of Monsanto.  "Delta and Pine Land has strong cotton genetics, and we believe Monsanto's leadership in providing the best cotton traits can improve on this already strong base."

Tom Jagodinski, president and chief executive officer of Delta and Pine Land, said, "Monsanto is a leading agricultural products company with a strong track record of growing and integrating diversified businesses.  Our companies are a natural fit that will provide a complete platform of cutting-edge seed technologies to our global farmer customer base for years to come."

Delta and Pine Land Company is a leader in the cotton seed industry and currently operates the largest and longest running private cotton seed breeding program in the world.  The company's extensive plant breeding programs, including its diverse base of international germplasm, has enabled the company to develop and deliver improved cotton varieties for their farmer customers for more than 90 years.

In recent years, Delta and Pine Land Company has worked to expand its breeding efforts through numerous facilities across the United States and around the world in an attempt to better serve its farmer customers.  Upon completion of the acquisition, management of both companies believe the proposed combination creates the opportunity to strengthen both the domestic and international cotton seed business by enhancing penetration of second-generation biotech trait offerings and continuing to invest in breeding to give cotton farmers who plant Delta and Pine Land's cotton seed varieties more choices.

Acquisition Details

Under the terms of the agreement, Delta and Pine Land shareowners will receive $42 per share in cash.  Monsanto intends to finance the acquisition with a combination of current cash on hand and a debt offering.  The acquisition is expected to be accretive to Monsanto's earnings per share (EPS) by the second year following closure of the acquisition, and Delta and Pine Land should be a contributor to operating cash in the first year.

The proposed acquisition requires review and approval by the appropriate regulatory authorities, including the U.S. Department of Justice.  Because of the required regulatory approvals, no time frame for the closing of the transaction has been announced.  As part of the proposed agreement, Monsanto has committed to divest the U.S. assets of its Stoneville cottonseed business if required to close the transaction.

Delta and Pine Land Company (NYSE: DLP) is a commercial breeder, producer and marketer of cotton planting seed. Headquartered in Scott, Mississippi, with offices and facilities in a number of foreign countries, Delta and Pine Land also breeds, produces and markets soybean planting seed.

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.  For more information, please visit the company's web site at www.monsanto.com.