DOW JONES NEWSWIRES
Monsanto Co. (MON) said it acquired the assets of WestBred LLC
for $45 million as it looks to expand its seeds and traits
portfolio to include wheat.
The move comes after a three-year commodities boom ended last
year. Though prices are down dramatically since last summer, they
remain historically high. Monsanto has been looking to
biotechnology research for future growth amid heightened
competition and expectations that its Roundup herbicide unit's
growth may fade after this year.
Montana-based WestBred specializes in wheat germplasm, the
crop's seed genetic material. Monsanto said the investment would
boost the growth of its seeds and traits platform.
"The U.S. wheat industry has come together to call for new
technology investment, and we believe we have game-changing
technologies - like our drought-tolerance and improved-yield traits
- that can meaningfully address major challenges wheat growers face
every season," said Carl Casale, Monsanto executive vice president
of global strategy and operations.
Monsanto said it would use WestBred's existing breeding
capabilities and commercial operations as the centerpiece of its
wheat platform.
Monsanto said because the deal represents a long-term investment
in research and development, it doesn't expect it to add to
earnings until the middle to later part of next decade.
Monsanto shares closed Monday at $73.55 and were inactive
premarket Tuesday. The stock is down 38% the past year amid
struggles at Monsanto's herbicide operations.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com