Monsanto buys regional seed company for $40 million

? Monsanto Co. said Tuesday its fledgling holding company would buy seed-marketer NC+ Hybrids Inc. for $40 million in cash, continuing the agribusiness’ shopping spree for regional seed companies as its dominance in herbicides erodes.

St. Louis-based Monsanto said NC+ Hybrids Inc., based in Lincoln, Neb., was the latest acquisition by its American Seeds Inc. unit, formed last year to support regional seed businesses with capital, genetics and technology investments.

NC+ Hybrids recently was formed through a reorganization of NC+ Hybrids Cooperative, established nearly a half century ago as armer-owned cooperative. The company represents roughly 1 percent of the U.S. corn seed market.

“ASI was established with the intention of cultivating a new business model that brings new technology more directly to more farmers through local seed brands,” said Kerry Preete, Monsanto’s vice president of U.S. crop production. NC+ Hybrids “is the logical continuation of our strategy to add regional seed companies that can build this new model and accelerate ASI’s growth.”

The purchase is the latest by Monsanto, which last month announced it was buying Boulder, Colo.-based Emergent Genetics Inc. — the nation’s third-largest cotton seed company — for $300 million. Emergent has roughly 12 percent of the U.S. cotton seed market.

That announcement came less than a month after Monsanto agreed to a $1 billion cash deal to buy Seminis Inc., the Oxnard, Calif.-based supplier of more than 3,500 seed varieties.

With Emergent and Seminis, Monsanto said it would have a broader germplasm and traits platform, accelerating Monsanto’s earnings growth this year by complementing its biotech corn and soybeans business.

Monsanto shares fell 98 cents, or 1.7 percent, to close at $57.80 on Tuesday on the New York Stock Exchange.