U.S. seed and agrochemicals company Monsanto Co said on Thursday it is selling its U.S. sorghum production assets to Remington Holding Co LLC and will roll its sorghum breeding business into a joint venture with the privately held company, in transactions valued at about $169.5 million.
Monsanto's global sorghum breeding business will be a part of the joint venture called Innovative Seed Solutions LLC, which will initially be focused on sorghum, a drought-tolerant grain crop that is used as animal feed and to produce ethanol biofuel. Remington will contribute cash to the venture.
The move comes in a period of heightened dealmaking in the agricultural seeds and chemicals industry. Monsanto last month rejected an unsolicited $62 billion takeover bid by Germany's Bayer AG, but the companies have since met to try to negotiate a deal.
Monsanto will take a 40 percent stake in the joint venture, with Remington owning the remaining share. The company will be governed by an operational board including senior executives from both companies, with Monsanto veteran Dan Zinck as its chief executive.
Monsanto said it expects the deal to close after regulatory approval.
