Skip to Content.
Sympa Menu

nafex - Re: [NAFEX] Monsanto Buy Seminis Seeds

nafex@lists.ibiblio.org

Subject: North American Fruit Explorers mailing list at ibiblio

List archive

Chronological Thread  
  • From: "Patti " <mtpander@comcast.net>
  • To: "North American Fruit Explorers" <nafex@lists.ibiblio.org>
  • Subject: Re: [NAFEX] Monsanto Buy Seminis Seeds
  • Date: Mon, 24 Jan 2005 14:44:35 -0800 (Pacific Standard Time)

On another list I read that Seminis provides seeds for Burpee, Territorial and Johnny's.  Does anyone know if that's true and what other seed companies they sell to.  Sounds like a boycott is in order.
 
Patti
 
-------Original Message-------
 
Date: 01/24/05 13:54:48
Subject: [NAFEX] Monsanto Buy Seminis Seeds
 
KANSAS CITY, Mo. (Reuters) - Agriculture products company Monsanto Co. (MON)
on Monday said it will buy Seminis Inc., the world's largest commercial
fruit and vegetable seed company, for at least $1 billion from a private
equity firm to capitalize on the trend toward healthier eating.
 
Monsanto, whose shares fell nearly 7 percent, will also assume about $400
million in debt and will make a payment of up to $125 million by the end of
fiscal 2007, based on financial targets.
 
Monsanto, a leading developer of genetic modifications for crops like
soybeans and corn, said biotechnology modifications to Seminis' fruit and
vegetable lines were an option, but the initial focus would be on leveraging
Seminis' conventional breeding programs with Monsanto's advanced research
and development to develop improved product options.
 
 
 
"In the near- to mid-term this is going to be about breeding," Monsanto
Chairman Hugh Grant told analysts and reporters on a conference call. "In
the long term, there may be an opportunity in biotechnology."
 
Seminis has only one biotech seed on the market now, a virus-resistant
squash introduced four years ago.
 
Grant said the vegetable seed market is enjoying solid growth, thanks in
part to healthier eating habits, and that Monsanto wants to capitalize on
that.
 
Seminis supplies more than 3,500 seed varieties to commercial fruit and
vegetable growers, dealers, distributors and wholesalers around the world.
 
The 10-year-old Oxnard, California-based company's top sellers include
tomatoes, cucumbers and beans, and its seeds are sold in more than 150
countries around the world.
 
The company is considered the largest fruit and vegetable seed company in
the world, with annual sales of $526 million in fiscal 2004. On a net basis,
it lost $16.3 million in fiscal 2004, improved from a loss of $31.7 million
in fiscal 2003, according to regulatory filings.
 
The company currently is privately held, with majority ownership held by
funds managed by private equity firm Fox Paine & Company LLC, of San
Francisco. Fox Paine bought control of Seminis from Mexican conglomerate
Savia (SAVIAA) in a deal announced in December 2002, for about $650 million
in cash and debt.
 
Seminis will operate as a wholly owned subsidiary of Monsanto.
 
The deal comes as Monsanto is shifting its focus from the highly competitive
herbicide chemical business to the seed industry, where it has seen strong
growth recently.
 
Monsanto already controls an estimated 14 percent of the U.S. corn seed
market and through licensing arrangements provides germplasm and technology
traits that extend its influence into about one-third of the U.S. market.
 
The deal is expected to close in Monsanto's 2005 fiscal third quarter, which
ends in May, and boost earnings in fiscal 2006, the company said.
 
Monsanto said the deal should not change its 2005 earnings forecast of $1.85
to $2.00 a share on an operating basis, but it revised its projected net
earnings for the year to a range of 86 cents to $1.06 a share, from a
previous forecast of $1.56 to $1.71.
 
Chief Financial Officer Terry Crews said Monsanto was slightly adjusting
downward its projected return on capital for 2005 and 2006. But the
combination should boost Monsanto's compounded annual growth in gross profit
to 7 percent from 4 percent.
 
"Seminis allows us to leverage our leadership ... to almost immediately
create additional growth for Monsanto," said Crews.
 
Analysts said Seminis was a good strategic fit, though they questioned the
high price, which is about double the valuation the company brought two
years ago.
 
Monsanto shares were down $4.01 at $53.71 in late afternoon trading on the
New York Stock Exchange.
 
 
 
 
_______________________________________________
nafex mailing list
 
**YOU MUST BE SUBSCRIBED TO POST!**
All other messages are discarded.
No exceptions.
----
To subscribe or unsubscribe, go to the bottom of this page (also can be used to change other email options):
 
File attachments are NOT stripped by this list
TAKE STEPS TO PROTECT YOURSELF FROM COMPUTER VIRUSES!
Please do not send binary files.
Use plain text ONLY in emails!
 
Message archives are here:
 
NAFEX web site:   http://www.nafex.org/
 



Archive powered by MHonArc 2.6.24.

Top of Page