Dow Ag, a division of Dow Chemical (DOW) has reached an agreement to acquire Wisconsin based Diaryland Seed Co., one of the nations largest independent seed companies.
Terms were not announced and the deal is expected to be finalized next month.
By acquiring Dairyland, Dow will boost its soybean and alfalfa breeding program and expand seed sales in the northern Midwest, where the family owned 101-year-old Dairyland is a well-known brand to farmers.
This is Dow’s 5th seed-related acquisition in the past year. The seed business Dow has built currently is strong in corn, sunflowers and cotton and now that is being expended into soybeans and alfalfa with the purchase. Coming into 2010 is the introduction of Smartstax, the first 8 trait genetically engineered seed developed in conjunction with Monsanto (MON).
Dow Ag is growing earnings 15% to 20% annually and with recent (and future) acquisitions and perhaps the largest product launch yet on the horizon, that growth looks to be able to grow unimpeded for at least the next several years.
Disclosure (“none” means no position):Long Dow, None
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