Monsanto Company and Remington Holding Company, LLC, Announce New Strategic Joint Venture to Drive Innovation and Market Access for Sorghum
By Business Wire News
By Business Wire News
Monsanto Company (NYSE: MON) and Remington Holding Company, LLC, (“Remington”), the parent company of a leading provider of customized seed production, processing, logistics and related services to the global seed industry, announced today that they are forming a new joint venture with an initial strategic focus on sorghum. The joint venture is designed to drive a higher level of investment and innovation in, and provide greater market access to, this important global cereal crop. Monsanto and Remington said the transaction is expected to close following customary regulatory approval.
Monsanto and Remington will establish the joint venture, which will be called Innovative Seed Solutions, LLC, through the contribution by Monsanto of its global sorghum breeding business – including its elite sorghum germplasm pool and related intellectual property – and the contribution by Remington of cash. In a related transaction, a subsidiary of Remington will purchase Monsanto’s sorghum production assets in the United States. The joint venture partners have valued these transactions at approximately $169.5 million with a total cash payment of $110.5 million by Remington.
Going forward, Monsanto and Remington said the new joint venture will be governed by an operational board with senior executive representation from both companies. Together with this board, the joint venture will be led by Dan Zinck, who will serve as chief executive officer and will work with an international team to lead research, commercial and growth aspects of the business. Remington and Monsanto will have ownership stakes in the joint venture of 60 percent and 40 percent, respectively.
Remington noted that with today’s announcement, it has expanded its partnership-focused business model and strengthened its position as a multi-national service provider to the retail seed industry – improving product access for a diverse set of global, national, and regional customers that market and sell seed to growers.
“Since establishing the Remington business model over 30 years ago, we have had a singular focus on providing the highest level of quality and service to ensure the success of our customers,” said John Overbeck, CEO of Remington. “We are honored to have this opportunity to enhance our existing relationship with Monsanto and to expand upon our seed service solutions by enhancing the seed industry’s access to elite product offerings.”
Monsanto noted that the new joint venture will help expand the commercial and technology reach of the elite germplasm, and it will remain focused on delivering important product offerings for sorghum growers so that they can continue to benefit from new innovations in the crop. Monsanto said it will source sorghum products derived from the joint venture and offer these products through its Asgrow®, DEKALB®, Channel® and regional seed brand dealer networks globally.
“We recognize that our sorghum business has great potential to expand and grow both domestically and internationally,” said Mike Frank, vice president and chief commercial officer of Monsanto Company. “We believe by partnering with Remington in the joint venture, we can bring an increased level of focus, investment and resources into this crop space, driving greater stability and value from this business. We remain committed to treating our employees with respect as we work through the necessary approvals for this transaction and next steps with our U.S.-based facilities.”
About Remington Holding Company
Founded on three simple, yet profound ideas – Customers first. Keep it simple. Treat our employees as family. – Remington has grown and expanded its business model to serve the global retail seed industry’s need for an independent provider of customized production, processing and distribution solutions. Our innovative business model and use of technology has allowed us to partner with some of the world’s leading seed retailers to provide unmatched services and the highest quality seed products available.
About Monsanto Company
Monsanto is committed to bringing a broad range of solutions to help nourish our growing world. We produce seeds for fruits, vegetables and key crops – such as corn, soybeans, and cotton – that help farmers have better harvests while using water and other important resources more efficiently. We work to find sustainable solutions for soil health, help farmers use data to improve farming practices and conserve natural resources, and provide crop protection products to minimize damage from pests and disease. Through programs and partnerships, we collaborate with farmers, researchers, nonprofit organizations, universities and others to help tackle some of the world’s biggest challenges. To learn more about Monsanto, our commitments and our more than 20,000 dedicated employees, please visit: discover.monsanto.com and monsanto.com. Follow our business on Twitter® at twitter.com/MonsantoCo, on the company blog, Beyond the Rows® at monsantoblog.com or subscribe to our News Release RSS Feed.
Monsanto Company’s Cautionary Statements Regarding Forward-Looking Information:
Certain statements contained in this release are “forward-looking statements,” such as statements concerning the company’s anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company’s actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company’s exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public understanding and acceptance of our biotechnology and other agricultural products; the success of the company’s research and development activities; the outcomes of major lawsuits; developments related to foreign currencies and economies; the impact of exploring, responding to, entering into or consummating potential acquisitions or other transactions and proposals; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company’s estimates related to distribution inventory levels; the recent increases in and expected higher levels of indebtedness; the company’s ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters, accidents, and security breaches, including cybersecurity incidents, on the agriculture business or the company’s facilities; and other risks and factors detailed in the company’s most recent periodic report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.
Lee Quarles, 314-694-2330
Remington Holding Company, LLC
Julie Overbeck, 219-261-3444
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