S&W and Corteva in Alfalfa Deal

  • S&W and Corteva in Alfalfa DealS&W and Corteva in Alfalfa Deal

US crop specialist S&W Seed Company has entered an agreement with Corteva Agriscience, DowDuPont’s Agriculture division, which terminates and replaces a December 2014 contract with Pioneer Hi-Bred International. Part of DuPont since 1999, the company has traded as DuPont Pioneer since July 2012.

In this latest agreement, S&W will receive $45 million in cash at closing plus $25 million to be paid on regularly scheduled dates concluding in February 2021. The Sacramento-based seeds company will retain ownership of all assets originally bought from Pioneer in 2014, including alfalfa varieties and germplasm, R&D capabilities and production facilities.

For its part, Pioneer will receive a fully prepaid exclusive license to produce and distribute certain S&W-owned varieties. It will also receive seed inventory from S&W with a book value of about $25 million and assume certain grower production contract rights and obligations.

Mark Wong, S&W’s president and CEO, commented: “This transaction allows S&W to pursue additional high-value growth opportunities consistent with our objective of building a leading integrated middle market agricultural company.”  He added that it “significantly improves our financial position and strategic flexibility at a time when we believe there are a number of attractive potential acquisitions in the seed industry.”

Wong noted that over the past few years S&W has significantly transformed itself from a pure-play alfalfa seed company into a fully integrated, multi-crop company with strong positions in sorghum, sunflower and alfalfa, adding that the deal will allow it to “continue and potentially accelerate” its strategic transformation.


Register now!

The latest information directly via newsletter.

To prevent automated spam submissions leave this field empty.