Acquisition strengthens GDM’s position in the region.
GDM, a global plant genetics company, announced its strategic acquisition of KWS’ corn and sorghum business in South America.
“This transaction represents a significant milestone in the consolidation of GDM’s row crop business in South America,” according to a company release.
The acquisition includes all of KWS’ South American corn breeding and sales activities, as well as corn and sorghum production sites in Brazil and Argentina, involving approximately 700 employees.
“The strength of the business that KWS has built in Argentina and Brazil makes this transaction a key acquisition for GDM,” the company stated.
Ignacio Bartolomé, GDM CEO, emphasized the synergy created by the acquisition.
“The combination of KWS’ corn position with GDM’s plant genetics expertise, with a focus on soybean and wheat, creates a unique synergy and strength for our market position and the continued advancement of our company,” he said in the release.
He also highlighted GDM’s commitment to the agricultural chain.
“We will continue to work closely with the entire agricultural chain, with the purpose of continuing to provide the latest advances in technology applied to plant genetics, with the producer as our main focus and yield as our central objective,” Bartolomé said.
Nicolás Wielandt, a member of the KWS executive board, expressed confidence in the decision to partner with GDM.
“In South America, we have established a strong position in the corn market, something we are very proud of. However, in order to implement the strategic objectives of the KWS group with full force and focus, we have decided that this is the right time, in terms of business maturity, to find a partner who is in a strong position to take the corn business in South America to the next level,” he said. “We are fully convinced that GDM is the right choice, both from a cultural perspective and in terms of its complementary business position. With GDM as the new owner, a strong player will emerge that is looking to grow further in the South American soybean and corn market.”
GDM will continue and enhance the business KWS has already developed. KWS will retain all vegetable, sugar beet and counter season breeding programs of the European corn and sugar beet portfolio in Brazil, Chile and Peru. GDM representatives emphasized that transaction will not affect the European corn business.
The details of the transaction and the purchase price were not disclosed. The transaction agreements are pending approval by regulatory bodies in Argentina and Brazil.
