Monsanto Company's American Seeds, Inc. (ASI) subsidiary announced it made five key strategic additions to its family of regional seed companies. The additions are expected to further bolster ASI's ability to help serve farmer-customers with a technology-rich, locally-oriented business model.
In separate transactions, ASI acquired four companies that are the shareowners of the CORE Group, an association of family-based seed companies that serve farmers throughout the Corn Belt. Those four companies are Fontanelle Hybrids, based in Fontanelle, Neb.; Stewart Seeds, based in Greensburg, Ind.; Trelay Seeds, based in Livingston, Wis.; and, Stone Seeds, based in Pleasant Plains, Ill.
In a fifth transaction, ASI acquired Specialty Hybrids, a leader serving the Eastern Corn Belt.
"The ASI model is entirely unique within this industry," says Kerry Preete, vice president of U.S. crop production at Monsanto Company. "This model fully utilizes the capabilities we've developed in our technology platforms placing it squarely behind local seed brands that can serve farmers with a unique personal touch."
"Because of its uniqueness, there is a great deal of opportunity for ASI to grow, and acquisitions like the CORE Group and Specialty Hybrids fit nicely into the type of investments we're committed to make to continue the acceleration of ASI's growth," says Preete.
The companies in the CORE Group will continue their organizational association, as the four companies will be combined into a single independent operating company within ASI. Specialty Hybrids will retain its current structure and become an independent operating company in the ASI organization.
Monsanto acquired the five companies in cash transactions totaling approximately $52 million. The specific terms of the individual transactions were not disclosed. Collectively, the companies in the CORE Group and Specialty Hybrids represent approximately 1% of the U.S. corn seed market.