Monsanto, Remington JV focus sorghum cereal crop

Monsanto, Remington JV to focus on sorghum cereal crop

11:30 AM, 17th June 2016
Monsanto, Remington JV to focus on sorghum cereal crop

ST LOUIS, US: Monsanto Company and Remington Holding Company LLC, (Remington) said that they are forming a new joint venture (JV) with an initial strategic focus on sorghum. The JV is designed to drive a higher level of investment and innovation and provide greater market access to, this important global cereal crop.

Monsanto and Remington will establish the JV, 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. Remington and Monsanto will have ownership stakes in the JV of 60 percent and 40 percent, respectively.

In a related transaction, a subsidiary of Remington will purchase Monsanto’s sorghum production assets in the US. The JV partners have valued these transactions at approximately $169.5 million with a total cash payment of $110.5 million by Remington.

Going ahead, the companies said that the new JV will be governed by an operational board with senior executive representation from both companies. Together with this board, the JV will be led by Dan Zinck, who will serve as CEO and will work with an international team to lead research, commercial and growth aspects of the business.

Remington noted that with this 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.

Monsanto noted that the new JV 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 JV and offer these products through its Asgrow, DEKALB, Channel and regional seed brand dealer networks globally.

“We are honoured 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,” said John Overbeck, CEO of Remington.

“We believe by partnering with Remington in the JV, 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 US-based facilities,” said Mike Frank, VP and chief commercial officer of Monsanto.

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