S&W Seed to acquire Australian seedmaker for $13.5M

LONGMONT — S&W Seed Co. (Nasdaq: SANW) has agreed to buy Australian pasture seed maker Pasture Genetics Pty Ltd. for as much as $13.5 million.

The Longmont seed company said it will pay $8.1 million USD up front for the Australian company through a combination of cash and debt placed on S&W’s Australian subsidiary. An additional $5.4 million would be paid out if Pasture Genetics hits certain performance metrics by September 2022.

Pasture Genetics breeds seeds for free-range plants consumed by sheep, horses and cows.

S&W believes it can find additional savings in its Australian sales and operations by absorbing Pasture Genetics, the third-largest seller of pasture seeds in the country.

“We believe the acquisition of Pasture Genetics will broaden our product portfolio and sales capabilities within Australia, a market where we have built out a significant presence as a provider of elite seed genetics,” CEO Mark Wong said in a prepared statement.

S&W primarily produces alfalfa seeds and hybrids of sunflowers, wheat and sorghum. It moved its headquarters from Sacramento, California to Longmont last November.

The companies expect to close the deal by the end of the month.

 

© 2020 BizWest Media LLC

LONGMONT — S&W Seed Co. (Nasdaq: SANW) has agreed to buy Australian pasture seed maker Pasture Genetics Pty Ltd. for as much as $13.5 million.

The Longmont seed company said it will pay $8.1 million USD up front for the Australian company through a combination of cash and debt placed on S&W’s Australian subsidiary. An additional $5.4 million would be paid out if Pasture Genetics hits certain performance metrics by September 2022.

Pasture Genetics breeds seeds for free-range plants consumed by sheep, horses and cows.

S&W believes it can find additional savings in its Australian sales and operations by absorbing Pasture Genetics, the third-largest seller of pasture seeds in the country.

“We believe the acquisition of Pasture Genetics will broaden our product portfolio and sales capabilities within Australia, a market where we have built out a significant presence as a provider of elite seed genetics,” CEO Mark Wong said in a prepared statement.

S&W primarily produces alfalfa seeds and hybrids of sunflowers, wheat and sorghum. It moved its headquarters from Sacramento, California to Longmont last November.

The companies expect to close the deal by the end of the month.

 

© 2020 BizWest Media LLC