Monsanto's subsidiary American Seeds Inc. made two new acquisitions Wednesday with the purchase of Hutchinson, Minn.-based Gold Country Seed, Inc. and Heritage Seeds, based in Rensselaer, Ind.
Gold Country Seed, Inc. serves farmers in the northern Corn Belt. Heritage Seeds serves farmers in the eastern Corn Belt.
The rapid farmer acceptance of new seed technologies has contributed to the decision announced today," states Harvey Pyle, Gold Country Seed Chairman of the Board and President of Unity Seed, Casselton, North Dakota.
"This new relationship allows each of the Gold Country Seed processors/retailers to what we do best do best â€¦. provide our farmer customers with the best genetics, trait technologies and service available in the industry today," shared by brothers Gene and John Lundquist , Wheaton, Minnesota. A founding member of Gold Country Seed, Lundquist Seed formed in 1955 is operated by second and third generation family members and serves a much wider geography than it did many years ago.
Ernesto Fajardo, vice president of Monsanto's U.S. crop production business, says the company looks "forward to enabling these regional companies to bring greater germplasm and trait innovation to their local markets."
Dennis Plummer, ASI president, welcomed both Corn Belt companies' commitment to serving farmers. "The ASI model is one that we believe can help connect regional seed companies to innovation in Monsanto's pipeline to accelerate their growth and provide more options for growers," says Plummer. "The addition of Gold Country Seed is a great opportunity to serve more farmers and it builds on our strategy to add regional seed companies to this model and accelerate growth in targeted areas."
Monsanto acquired both companies in cash transactions totaling $8.7 million. The specific terms of the individual transactions were not disclosed. Collectively, these two companies represent approximately 0.4% of total U.S. corn and soybean seed sales.
For more information on ASI, see: www.americanseedsinc.com.