St. Louis, Missouri, USA
May 20, 2015
Monsanto Company (NYSE: MON) and The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products, today announced the two companies have extended their nearly two-decade long partnership in the lawn and garden consumer market.
Since 1999, Scotts Miracle-Gro, through one of its subsidiaries, has served as Monsanto's exclusive agent for the marketing and distribution of Roundup® non-selective herbicides in the consumer lawn and garden market within the United States and select international markets. Today’s agreement will unlock additional value in the Roundup brand in the lawn and garden segment by providing Scotts with an extended license to use the Roundup brand in new lawn and garden product categories and broaden their marketing rights into new geographies.
As part of the extension, Monsanto also renewed and expanded the terms of its marketing agreement with Scotts and provided preferred access to Monsanto’s R&D pipeline for lawn and garden.
“This agreement highlights the value of the Roundup brand and extends the relationship with a long-term, trusted partner,” said Kerry Preete, Monsanto Executive Vice President of Global Strategy. “It also further demonstrates our commitment to our broad licensing strategy. Monsanto looks forward to the continued partnership with Scotts as we work to deliver consumers with a diverse range of lawn and garden solutions.”
Under the agreement, Scotts will pay Monsanto a one-time upfront payment of $300 million in exchange for a Roundup® brand license, extended agency agreement and technology agreement.
Monsanto’s President and COO Brett Begemann will speak today at the BMO 10th Annual Farm to Market Conference at 11:30 AM CT (12:30 PM ET). Brett will discuss product performance, the company’s strategic initiatives and long-term growth drivers, and other matters related to the company’s business including today’s announcement with Scotts.
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