Monsanto to buy Dutch seed firm

Monsanto Co. said today it will buy Dutch vegetable-seed company De Ruiter Seeds Group BV for 546 million euros, or more than $862 million based on today’s currency exchange rate.

Monsanto, based in Creve Coeur, said it will add the company to its Seminis unit to create a vegetable-seed business with $1 billion in sales by 2012. De Ruiter last year had global sales of approximately 108 million euros, or $157.7 million based on the Dec. 31 currency exchange rate.

The deal is subject to regulatory approvals, so Monsanto could not say when it is expected to close. The company said De Ruiter will contribute to net earnings, cash flow and revenue growth by the second full fiscal year following closure. Monsanto will fund the acquisition with cash.

De Ruiter’s focus is on providing seeds for greenhouse agriculture, which is one of the fastest-growing segments in the vegetable seed industry, Monsanto said. Seminis’ seeds primarily are used in open-field agriculture.

“This acquisition represents an opportunity to not only transform, but further grow our vegetable seed business in a high-value, fast-growing segment of the market,” said Terry Crews, Monsanto’s chief financial officer and chief executive of the Seminis unit.

Details on the deal are available on Monsanto’s website.