Monsanto to buy seed corn producer, makes agchem discovery deal

Abstract

Monsanto announced three deals last week—two in seed production and marketing and one in agrochemicals—that will expand its technology base and provide commercialization routes for its biotechnology developments. In the two largest deals, Monsanto will spend a total of up to $1.02 billion to acquire Holden's Foundation Seeds and two Corn States businesses. Based in Williamsburg, Iowa, Holden's is a leading producer of seed corn used by retail companies to create hybrid seeds for farmers. Des Moines-based Corn States Hybrid Service and Corn States International are the exclusive worldwide marketing and sales representatives for Holden's products. Late last month, Monsanto received final U.S. regulatory approval to market its genetically engineered insectresistant corn. The deals are still under negotiation, says a Monsanto spokeswoman, but about $945 million of the acquisition price will be for Holden's. This is a tremendously high premium for a privately held company that has annual sales of about $45 mil...