Bayer CropScience agrees to acquire US cotton seed company Stoneville for US-$ 310 million

05-Jun-2007

Bayer CropScience announced that it has entered into an agreement to purchase Stoneville Pedigreed Seed Company, US provider of cotton seeds, from Monsanto Company for a total purchase price of US-$ 310 million (approximately EUR 230 million). The agreement was signed on May 31, 2007. This acquisition is expected to enhance the fast-growing US cotton seed business of Bayer CropScience. The acquisition is subject to the approval of the US competition authorities.

"As part of our long-term strategy for innovation and growth, we intend to strengthen the position of Bayer CropScience in the seeds market. The acquisition of the Stoneville activities in the US is a significant step in further expanding our successful cotton seed business, which forms part of our core seed crops along with canola, rice and vegetables" says Werner Wenning, Chairman of the Board of Management of Bayer AG.

In acquiring the US assets of Stoneville, Bayer CropScience will gain access to additional high performing cotton products with insect-resistant and herbicide-tolerant Monsanto traits. The new germplasm and the geographic reach of the Stoneville business East of Texas ideally complement Bayer CropScience's cotton seed and trait business, according to the company.

The business to be acquired by Bayer CropScience represents a turnover of about US-$ 45 million (approximately EUR 36 million) as per Stoneville's fiscal year 2005/2006. The acquisition does not include Stoneville's NexGen(TM) franchise, a regional cotton seed business in Texas, and other assets related to the NexGen business.

Your contact: Bayer AG, Leverkusen

Bayer CropScience LP, Research Triangle Park /USA

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