S&W Seed Company announces the acquisition of the assets and business of SV Genetics Pty Ltd., based in Queensland, Australia, a provider of proprietary hybrid sorghum and sunflower seed germplasm.
The acquisition expands S&W’s product portfolio by adding two complementary crops that are expected to provide diversification into higher margin opportunities while leveraging the Company’s existing infrastructure. S&W expects to realize various synergies within its alfalfa production, distribution and research capabilities while also benefitting from licensing agreements that SVG has in place across the world.
SVG currently licenses its proprietary seed genetics (and sells parent seed) to local-market production/distribution partners. The licensees produce hybrid seed using the SVG genetics and pay SVG a royalty on the seed produced and sold. S&W believes that hybrid sorghum and sunflower can be sold into S&W’s existing distribution channels, while providing a significant opportunity for S&W to expand its distribution of alfalfa seed products into new markets, including Eastern Europe and Russia, where SVG already has a presence.
“We believe there are opportunities to grow SVG’s business by leveraging our existing infrastructure. SV Genetics has built an attractive proprietary germplasm portfolio through years of research and development,” said Matthew Szot, chief financial officer of S&W Seed Company. “We believe that this acquisition provides S&W with a unique opportunity to better monetize this investment in research and development and help accelerate growth of the business. We look forward to working with the SV Genetics team to realize the full potential of the business.”
