Monsanto Acquires De Ruiter Seeds
8 April 2008 Monsanto Co. has signed an agreement to acquire De Ruiter Seeds Group B.V., a Dutch holding company that owns De Ruiter Seeds, for approximately US $800 million, according to a Monsanto release. The acquisition will bolster Monsanto’s vegetable seed business and improve the company’s position in the protected-culture segment, which is the fastest growing vegetable seed sector, according to Monsanto.
“De Ruiter Seeds is a leading provider of high-quality products to growers within the protected-culture vegetable seed market,” said Terry Crews, chief financial officer of Monsanto and chief executive officer of Seminis, the vegetable seeds division of Monsanto. “When combined with the operational improvements we’ve made in our Seminis business and the growth opportunity of our marker-assisted breeding platform, this acquisition represents an opportunity to not only transform, but further grow our vegetable seed business in a high-value, fast-growing segment of the market.”
“We are pleased to have entered into this agreement with Monsanto who is a global leader in agriculture technology,” said Biense Visser, chief executive officer of De Ruiter Seeds. “De Ruiter’s investment in high-quality seeds, our leadership in the protected-culture market, and our dedicated professionals will be a valuable addition to Monsanto’s business and a new platform for its advanced breeding technology and value-added products. We look forward to working with Monsanto to deliver novel value-added vegetable seed products to growers and consumers around the world.”
Monsanto’s Crews added that the acquisition is expected to transform Monsanto’s vegetable seed platform into a $1 billion revenue business by 2012. Monsanto’s established and growing research in marker-assisted breeding is expected to offer an immediate jump-start for De Ruiter Seeds breeders, and the combination of De Ruiter Seeds’ rich pool of genetics and their operating experience within the protected-culture segment is expected to enhance Monsanto’s offerings to the vegetable seed market through three segments: protected-culture, open field, and regional vegetable seed businesses. The De Ruiter Seeds business will serve the protected-culture vegetable seed market, Seminis will serve the open-field vegetable seed market, and the International Seed Group, Inc. (ISG) will serve customers of regional seed businesses.
Biense Visser will continue to lead the De Ruiter Seeds business, which will report into Kerry Preete, who currently leads Monsanto’s vegetable seed businesses.
The acquisition requires review and approval by regulatory authorities. Because of these required regulatory approvals, no timeframe has been announced for the closing of the transaction.
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