Monsanto to Acquire Emergent Genetics

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GMW: Monsanto to Acquire Emergent Genetics

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Thu, 17 Feb 2005 17:23:46 GMT

 

 

 

 

Monsanto to Acquire Emergent Genetics

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Monsanto to Acquire Emergent Genetics

By JIM SUHR

Feb 17 2005

http://www.durantdemocrat.com/articles/2005/02/17/ap/business/d88aata00.txt

 

ST. LOUIS - Continuing its recent buying spree, agribusiness Monsanto

Co. said Thursday it plans to buy Emergent Genetics Inc. _ the nation's

third-largest cotton seed company _ for $300 million.

 

The announcement comes less than a month after St. Louis-based Monsanto

agreed to a $1 billion cash deal to buy Seminis Inc., the Oxnard,

Calif.-based supplier of more than 3,500 seed varieties to commercial

fruit

and vegetable growers, dealers, distributors and wholesalers in more

than 150 countries.

 

" This is our second major strategic acquisition recently and now we

believe we have the elements we need to achieve our goals, " said Hugh

Grant, Monsanto's chairman, president and chief executive.

 

To reflect the aquisition of Emergent, Monsanto said it now expects its

earnings per share on an ongoing business basis for fiscal 2005 to be

near the upper end of its previous forecast of $1.85 to $2.00.

 

In trading Thursday morning, Monsanto shares slipped 22 cents to $56.26

on the New York Stock Exchange _ still near the high end of its 52-week

trading range of $31.21 to $59.29.

 

Boulder, Colo.-based Emergent has roughly 12 percent of the U.S. cotton

seed market through its Stoneville and NexGen brands. Emergent also has

two cotton seed brands in India and a solid presence in several other

smaller cotton-growing markets.

 

With Emergent and Seminis, Monsanto said it will have a broader

germplasm and traits platform, accelerating Monsanto's earnings growth

this

year by complementing Monsanto's biotech corn and soybeans business.

 

With competition continuing to erode Monsanto's dominance in

herbicides, the maker of Roundup has increasingly focused on seeds _

including

genetically modified offerings able to withstand weeds, insects and

disease seeds _ for future profits. Monsanto already makes the DeKalb and

Asgrow brands of seeds.

 

Late last year, Monsanto's newly formed holding company _ American

Seeds Inc. _ acquired Indiana-based seed company Channel Bio Corp. for

$120

million cash. Monsanto formed American Seeds to support regional seed

businesses with capital, genetics and technology investments.

 

Monsanto said it expects the Emergent deal, subject to regulatory

approvals, to close " as soon as practical. " The acquisition does not

include

Denmark-based Emergent Vegetable A/S.

 

On the Net:

 

Monsanto Co.: http://www.monsanto.com

 

Emergent Genetics Inc.: http://www.emergentgenetics.com

 

 

 

 

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