There’s even more news from Monsanto this morning and Landec as well. Actually two stories in one.
Monsanto Company and Landec Corporation announced two separate agreements today, both of which are expected to broaden their reach and product offerings to U.S. farmers. The two agreements are potentially valued at more than $70 million.
In the first transaction, Monsanto’s American Seeds, Inc. (ASI) subsidiary announced that it has acquired Landec’s direct marketing and seed sales company, Fielder’s Choice Direct (FCD), based in Monticello, Ind. The sales price for FCD was $50 million in cash paid at the close on December 1, 2006 with a potential additional earn-out amount of up to $5 million based on FCD results for the twelve months ended May 31, 2007.
In the second transaction, the parties announced that they have entered into a five-year global technology license agreement for Landec’s Intellicoat(R) polymer seed coating technology. Under the five-year agreement, Monsanto will become the exclusive sales and marketing agent for Landec’s Intellicoat seed coating technology in corn, oilseeds and cotton. Monsanto also receives an option to buyout the Intellicoat seed coating technology.