Monsanto will own 40% of the company and contribute its global sorghum breeding business.
As part of the joint venture, Remington will contribute funds and own 60% of the business, while Monsanto will own 40% and contribute its global sorghum breeding business, such as its germplasm breeding pool and related intellectual property.
Related to the joint venture formation, a Remington subsidiary will purchase Monsanto’s sorghum production assets in the United States in a transaction valued at approximately $169.5 million, including a cash payment of $110.5 million by Remington.
An operational board consisting of senior executives from both Remington and Monsanto will govern the joint venture. Monsanto executive Dan Zinck will lead the joint venture as chief executive officer. The board also will work with an international team that will lead research, commercial and growth aspects of the business.
“Since establishing the Remington business model over 30 years ago, we have had a singular focus on providing the highest level of quality and service to ensure the success of our customers,” said John Overbeck, chief executive officer of Remington. “We are honored 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 said the joint venture will allow the company to expand the technology and reach of sorghum germplasm, and will continue to provide innovative resources so sorghum growers can continue to benefit from the new innovations in the crop. The products will be sourced from the joint venture and offered through its brands such as Asgrow, Dekalb, and Channel, as well as regional seed brand dealer networks globally.
“We recognize that our sorghum business has great potential to expand and grow both domestically and internationally,” said Mike Frank, vice-president and chief commercial officer of Monsanto. “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 U.S.-based facilities.”