St. Louis, Missouri
June 28, 2006
Monsanto Company's (NYSE:
MON) American Seeds,
Inc. (ASI) subsidiary announced today it is making five
additions to its family of regional brands. The additions are
expected to further bolster ASI's ability to reach farmers
customers in underserved geographies with a technology-rich,
locally-oriented business model.
In separate transactions, ASI
acquired the seed marketing and sales businesses of
Diener Seeds, based in
Reynolds, Indiana and
Sieben Hybrids, based in Geneseo, Illinois. ASI also entered
into definitive agreements to acquire
Kruger Seed Company,
based in Dike, Iowa; Trisler
Seed Farms, based in Fairmount, Illinois; and the seed
marketing and sales business of
Campbell Seed, based
in Tipton, Indiana on July 1, 2006. Collectively, the five
companies serve farmers throughout the central and eastern Corn
Belt.
"ASI is pleased to announce
these additions to the company's regional business model," said
Ernesto Fajardo, vice president of Monsanto's U.S. crop
production business. "ASI's growth over the last year serves as
a true testament to Monsanto's pioneering research in breeding
and biotech, as well as the benefits that these platforms are
generating for regional seed companies and, in turn, their
farmer customers."
Dennis Plummer, ASI president,
also welcomed today's announcement. "ASI's high-touch, regional
approach is unparalleled in the seed industry," Plummer said.
"These companies have a long-standing commitment of serving
farmers throughout the Corn Belt. We look forward to working
with them to introduce new seed-based innovations for their
farmer-customers, while maintaining their strong track record of
customer service."
Monsanto is acquiring these
businesses in cash transactions aggregating approximately $77
million. The specific terms of the individual transactions were
not disclosed. Collectively, these five seed companies represent
approximately 1.4 percent and 2.0 percent of total U.S. corn and
soybean seed sales, respectively.
American Seeds, Inc. (ASI),
which was formed by Monsanto in 2004, serves as a holding
company for regional seed companies that market primarily corn
and soybeans. ASI provides support for these regional seed
businesses with capital, genetics and technology investments.
These investments allow the operating companies of ASI to more
directly connect their customers to significant innovations in
genomics-based breeding and other new technologies while
continuing to operate autonomously and locally, providing great
services to their customers.
Monsanto Company is a
leading global provider of technology-based solutions and
agricultural products that improve farm productivity and food
quality. |