Laverton North, Victoria,
Australia
August 5, 2009
Nufarm Ltd has strengthened and expanded its seed business
by acquiring two US based sorghum companies. The acquisition of
Texas based Richardson
Seeds Ltd and MMR
Genetics Ltd was completed this week for an undisclosed
cost.
Richardson Seeds is a leading producer and marketer of sorghum
seed hybrids, with a leading market share in the US and
expanding market positions in Mexico, South America, Europe,
Japan and the Middle East. The company was founded over 50 years
ago and has processing capabilities of 10,000 bags of sorghum
seeds per day.
MMR Genetics – previously 47% owned by Richardson Seeds – is a
global leader in the development of elite sorghum germplasm,
used by many of the world's top seed companies. The company
conducts grain and forage sorghum research in various countries
under the leadership of Dr Fred Miller, an industry stalwart
considered to be the „father" of hybrid breeding in sorghum.
Combined sales of Richardson Seeds and MMR in 2008 totalled
approximately USD22 million.
Sorghum is an increasingly important crop that is finding
expanded use as an animal feed; for human consumption; and as a
feedstock for the production of biofuels. It is grown on
approximately 40 million hectares, predominantly in semi-arid
regions of North and South America, Asia, Africa, India and
Australia.
Nufarm's Managing Director, Doug Rathbone said the acquisitions
represent high quality assets that will considerably strengthen
Nufarm's existing seeds platform.
“Sorghum has been a target crop for our seeds business and the
addition of Richardson Seeds and MMR brings expertise and
geographic diversity in germplasm development and licensing;
seed production; conditioning; and marketing and sales.”
Nufarm's General Manager of Seeds, Brent Zacharias, said the
additional scale and reach resulting from the acquisitions will
deliver significant growth and will be complementary to the
company's existing sorghum operations that were secured via last
year's acquisition of Queensland based Lefroy seeds.
Mr Zacharias said it is particularly important to have secured
the retention and ongoing contribution of the management and
employees of Richardson Seeds, including company President,
Larry Richardson and of MMR, including Dr Miller.
“The industry knowledge and relationships that have been built
up within these businesses represent important value. I look
forward to working with our new teams in Texas and elsewhere to
capitalise on the synergies that will result from new
opportunities in areas such as breeding, production, seed
treatment, and cross marketing of our elite sunflower genetics
in target markets.”
Mr Richardson said Richardson Seeds and MMR Genetics customers
will continue to receive the high level of service and attention
that has always been the case, with Nufarm's ownership providing
substantial scale up capability in both developing markets and
breeding efforts.
Other news
from
Richardson Seeds Ltd.
Other news from
MMR Genetics Ltd. |
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