Bayer CropScience Agrees to Acquire US Cotton Seed Company Stoneville for US-$ 310 million
01 June 2007 - 5:01AM
PR Newswire (US)
Acquisition of leading US cotton business expected to bolster
growth strategy LEVERKUSEN, Germany, May 31 /PRNewswire/ -- Bayer
CropScience announced today that it has entered into an agreement
to purchase Stoneville Pedigreed Seed Company, a leading US
provider of cotton seeds, from Monsanto Company for a total
purchase price of US-$ 310 million (approximately EUR 230 million).
The agreement was signed on May 31, 2007. This acquisition is
expected to enhance the fast-growing US cotton seed business of
Bayer CropScience, currently the second largest cotton seed
supplier in North America. The acquisition is subject to the
approval of the US competition authorities. "As part of our
long-term strategy for innovation and growth, we intend to
strengthen the position of Bayer CropScience in the seeds market.
The acquisition of the Stoneville activities in the US is a
significant step in further expanding our successful cotton seed
business, which forms part of our core seed crops along with
canola, rice and vegetables" says Werner Wenning, Chairman of the
Board of Management of Bayer AG. In acquiring the US assets of
Stoneville, Bayer CropScience will gain access to additional high
performing cotton products with insect-resistant and
herbicide-tolerant Monsanto traits. The new germplasm and the
geographic reach of the Stoneville business East of Texas ideally
complement Bayer CropScience's cotton seed and trait business. The
acquisition will also bring in skilled and knowledgeable staff as
well as state-of-the-art breeding and seed processing facilities in
the US. The business to be acquired by Bayer CropScience represents
a turnover of about US-$ 45 million (approximately EUR 36 million)
as per Stoneville's fiscal year 2005/2006. The acquisition does not
include Stoneville's NexGen(TM) franchise, a regional cotton seed
business in Texas, and other assets related to the NexGen business.
Says Prof. Dr. Friedrich Berschauer, Chairman of the Board of
Management of Bayer CropScience: "Through the acquisition of
Stoneville, we can offer an even broader cotton seed portfolio to
US farmers, strengthening our offering of desired traits, high
yield and excellent fiber quality. Through this acquisition we are
also assured of having the critical mass in the cotton seed
business to continue to bring innovative products to the market."
Led by its flagship FiberMax(R) brand, Bayer CropScience has seen
its US cotton seed business growing strongly over the past years.
The purchase of the US Stoneville business is a further
continuation of the company's successful strategy of growing its
presence in the US cotton market via new product development and
organic growth as well as acquisitions. Over the last two years,
Bayer CropScience has acquired the assets of US companies
Associated Farmers Delinting, Inc. (AFD), a regional cotton seed
production and processing company based in Littlefield, Texas, and
California Planting Cotton Seed Distributors (CPCSD), a developer,
producer and distributor of high quality cotton seeds, enabling
access to new regional markets in the US and to considerable
storage and processing capacities. In December 2006, Bayer
CropScience also purchased the cotton assets of Reliance Genetics
LLC of Harlingen, Texas. Bayer CropScience AG, a subsidiary of
Bayer AG with annual sales of about EUR 5.7 billion (2006), is one
of the world's leading innovative crop science companies in the
areas of crop protection, non-agricultural pest control, seeds and
plant biotechnology. The company offers an outstanding range of
products and extensive service backup for modern, sustainable
agriculture and for non-agricultural applications. Bayer
CropScience has a global workforce of about 17,900 and is
represented in more than 120 countries. This and further news is
available at: http://www.newsroom.bayercropscience.com/. Leverkusen
/ Monheim, May 31, 2007sku / jo (2007-0272 e) Forward-looking
statements This news release contains forward-looking statements
based on current assumptions and forecasts made by Bayer Group
management. Various known and unknown risks, uncertainties and
other factors could lead to material differences between the actual
future results, financial situation, development or performance of
the company and the estimates given here. These factors include
those discussed in our annual and interim reports to the Frankfurt
Stock Exchange and in our reports filed with the U.S. Securities
and Exchange Commission (including our Form 20-F). The company
assumes no liability whatsoever to update these forward-looking
statements or to conform them to future events or developments.
DATASOURCE: Bayer CropScience AG CONTACT: Guenter Forneck of Bayer
AG, Leverkusen, +0049-214-30-50446, ; Steffen Kurzawa of Bayer
CropScience AG, Monheim, +0049-2173-38-3504, ; Greg Coffey, Bayer
CropScience LP, Research Triangle Park- USA, +001-919-549-2404, Web
site: http://www.newsroom.bayercropscience.com/
Copyright