AgrEvo Acquires Cargill Hybrid Seeds North America

Hoechst Schering AgrEvo GmbH (Berlin) and Cargill Inc. (Minneapolis) have signed a definitive acquisition agreement whereby AgrEvo will acquire substantially all Cargill's North American seed assets for $650 million.

Cargill Hybrid Seeds North America (CHS) produces high performance hybrid seed in the U.S. and Canada, with four percent market share in the U.S. corn seed market. In addition, CHS is a leader in sunflower seeds in North America and has targeted the commercialization of specialty hybrids such as FullTime forage corn, high oil and white and yellow food-grade corn and mid-oleic sunflowers.

Under the terms of the sales agreement, Cargill farm service centers in North America will continue to market Cargill brand seeds to their farm customers.

The acquisition, which includes research and production facilities in 14 U.S. states and one Canadian province, is expected to close November 2nd. Cargill will retain ownership of its Inter Mountain Canola (canola seed research and breeding business in the United States and Canada), Goertzen Seed Research (wheat seed research and breeding in the United States) and Cargill's Canadian seed distribution business, which operates as Cargill Seed.

AgrEvo, a joint venture of Hoechst AG and Schering AG, is a global player in biotechnology, seeds, crop protection and environmental health. AgrEvo markets globally a wide range of products for enhancing crop production and is a leader in hybrid vegetable seeds through its subsidiaries Nunhems Seeds and Sunseeds.

Cargill Incorporated is an international marketer, processor and distributor of agricultural, food, financial and industrial products with 80,600 employees in more than 1,000 locations in 65 countries and with business activities in 130 more.