Precision Planting, the Illinois company that has been a leader in working with farmers to improve their planting practices is joining the Monsanto family. Monsanto Company announced Wednesday it had reached an agreement to purchase Tremont, Ill.-based Precision Planting, Inc.
Monsanto will pay $210 million for the business, plus a performance-based added payment of up to $40 million as part of the acquisition.
The Precision Planting team will become part of Monsanto's growing Integrated Farming Systems unit, which uses advanced agronomic practices, seed genetics and on-farm technology to help farmers achieve better yields while using fewer resources, according to the announcement. Precision Planting is well-known for its work in optimizing planter performance including FieldView technology which can monitor all aspects of planter performance and crop data analysis.
"This underscores our commitment to maximizing yield for farmers while optimizing crop inputs, which is central to our vision of sustainable agriculture," says Robb Fraley, Monsanto's chief technology officer.
Adds Gregg Sauder, founder of Precision Planting: "Precision Planting's goal is to boost yields through equipment innovation. Monsanto delivers yield through genetics and traits. Together we can develop the advanced planting technologies that accurately deliver the optimum genetics to each square foot of soil."
The transaction is subject to customary closing conditions and is expected to be finalized this summer. Other terms were not disclosed.
Fraley will discuss Integrated Farming Systems and this morning's announcement during an investor presentation that will be webcast. The webcast can be accessed by visiting www.Monsanto.com, and clicking on "Investor Information."
Precision Planting was founded in 1993 by Sauder and his wife, Cindy. The Sauders had an interest in and talent for developing planter add-ons to achieve precise depth and spacing to maximize yield and crop performance on their own farm. The company has grown significantly and is known for its in-depth clinics and presentations to help farmers boost yield and productivity.
According to the release, Precision Planting as a "rich pipeline including a system designed to help simplify variable rate planting and increase farmers' yields through more accurate planting." The company will remain in Tremont and all Precision employees will be offered their continued jobs with the firm.