Monsanto Company and Landec Corporation have announced two separate agreements, both of which are expected to broaden their reach and product offerings to U.S. farmers. The two agreements are potentially valued at more than $70 million.
In the first transaction, Monsanto’s American Seeds, Inc. (ASI) subsidiary announced that it has acquired Landec’s direct marketing and seed sales company, Fielder’s Choice Direct (FCD), based in Monticello, IN. The sales price for FCD was $50 million in cash paid at the close on Dec. 1, 2006 with a potential additional earn-out amount of up to $5 million based on FCD results for the twelve months ended May 31, 2007.
Under the first agreement, ASI will acquire FCD’s customer call center operation, which serves customers across the Midwest and is the largest telemarketer of corn seed sales. ASI will also acquire Landec’s two seed brands: Fielder’s Choice Direct and Heartland Hybrids. Collectively, these two seed brands represent slightly more than 1% of U.S. corn seed sales. These seed brands will join the ASI family of regional seed offerings which serves farmers with a technology-rich, locally-oriented business model.
In the second transaction, the parties announced that they have entered into a five-year global technology license agreement for Landec’s Intellicoat polymer seed coating technology. Under the five-year agreement, Monsanto will become the exclusive sales and marketing agent for Landec’s Intellicoat seed coating technology in corn, oilseeds and cotton. Monsanto also receives an option to buyout the Intellicoat seed coating technology.
Landec’s Intellicoat seed coating technology offers several unique benefits to farmers including the ability to delay seed germination until the soil reaches the optimal temperature. This approach offers farmers the option to expand their planting window, lower on-farm costs, and reduce the risks associated with late planting.
Landec’s Intellicoat seed coating technology offers several unique benefits to farmers including the ability to delay seed germination until the soil reaches the optimal temperature. This approach offers farmers the option to expand their planting window, lower on-farm costs, and reduce the risks associated with late planting.