Monsanto and Remington Holding form joint venture

Monsanto and customised seed provider Remington Holding Company (Remington) have entered into a joint venture (JV) with an initial strategic focus on sorghum.

The new Innovative Seed Solutions JV will drive innovation, higher investment and provide greater market access to the cereal crop.

The transaction is expected to close following customary regulatory approval.

In this JV, Monsanto will contribute through its global sorghum breeding business, including its elite sorghum germplasm pool and related intellectual property while Remington will contribute cash.

In a related deal, a subsidiary of Remington will procure Monsanto’s sorghum production assets in the US.

These transactions are valued at approximately $169.5m with Remington, making a total cash payment of $110.5m.

Monsanto and Remington stated said the new joint venture will be governed by an operational board with senior executive representation from both companies.

Monsanto vice-president and chief commercial officer Mike Frank said: "We recognise that our sorghum business has great potential to expand and grow both domestically and internationally.

"We believe by partnering with Remington in the joint venture, 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."

Remington CEO John Overbeck said: "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."

Monsanto will source sorghum products from the joint venture and offer these products through its Asgrow, Dekalb , Channel and regional seed brand dealer networks across the world.