Monsanto Company (NYSE: MON) today announced it has signed a definitive agreement for the sale of assets associated with the company's European wheat and barley business to Rodez, France-based RAGT Genetique, S.A. Monsanto originally stated its intention to exit the European wheat and barley breeding business as a part of a global restructuring plan announced in October 2003.

The agreement is contingent on the usual competition merger consents in relevant European countries. Following the successful completion of the divestiture, Monsanto expects to record a net gain of approximately $25 million before taxes in discontinued operations, after accounting for currency adjustments and transactional costs.

Under the terms of the agreement, RAGT will assume operation of Monsanto's European wheat and barley business, headquartered in Cambridge, U.K. RAGT receives assets- including the wheat and barley seed breeding facilities in France, Germany, and the Czech Republic. The financial terms of the agreement were not disclosed.

"Over the past few years, we believe our management of this business has resulted in its becoming much more efficient and competitive in today's challenging European cereals market," said Brett Begemann, executive vice president of international commercial operations for Monsanto. "We're pleased RAGT is investing in this business and will continue to develop seed products that will benefit wheat and barley farmers."

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.