Landec Corporation
(Nasdaq: LNDC), a developer and marketer of technology-based
polymer products for food, agricultural and licensed partner
applications, announced today that its agricultural seed
subsidiary, Landec Ag, Inc., has acquired
Heartland Hybrids,
Inc., the second largest direct marketer of seed corn.
Landec Ag, through its Fielder’s Choice Direct
brand®, is the leading direct marketer of seed corn.
Under the
agreement, Landec Ag will acquire the assets of Heartland
Hybrids, which is based in Dassel, Minnesota. The agreement
is expected to close before the end of August 2005.
Tom
Crowley, Landec Ag’s President and Chief Executive Officer,
said, “The acquisition of Heartland Hybrids will solidify
Landec Ag’s leading market position in the
direct-to-the-farm sales channel for agricultural seeds. In
addition, adding the Heartland Hybrids® brand to
Landec Ag’s Fielder’s Choice Direct brand will strengthen
our market share leverage to access the best genetics and
traits in the industry, as well as advancing our Intellicoat®
Early Plant® technology in the market place.”
Heartland
Hybrid’s President, Jay Asplin, added, “We believe the
acquisition of Heartland Hybrids by Landec Ag will enhance
our commitment of bringing great value to the U.S. corn
farmer. The combined knowledge of Heartland Hybrids and
Fielder’s Choice Direct of the direct-to-the-farm method of
selling will provide the most efficient and effective
distribution system in the seed industry. We are also
excited about the prospect of adding Landec Ag’s Intellicoat
technology to our product line up and believe it will be a
strong contributor to the future growth of the Heartland
Hybrids brand.”
“The
acquisition of Heartland Hybrids is a strategic move by
Landec Corporation in the execution of our stated strategy
to grow our overall seed business at rates substantially
above the industry levels by selling a higher value mix of
products, and at the same time leveraging our Intellicoat
seed coating technology,” commented Gary Steele, Landec
Corporation President and Chief Executive Officer.
About Heartland Hybrids
Heartland
Hybrids was formed in 1996 as a direct to-the-farm marketer
of hybrid seed corn. Heartland Hybrids has a strong
regional presence in the northern Corn Belt with their
headquarters in Dassel, Minnesota, and a regional office in
Lake View, Iowa. Heartland Hybrids sells a comprehensive
line of hybrid seed corn to more than 3,000 farmers in 35
states through its direct marketing capabilities. Heartland
Hybrids has also developed a new computer-based Geographic
Information System called CS³, an advanced system developed
to enhance the positioning of seed varieties and
biotechnology traits for increased product performance.
About Landec Ag
Landec Ag
was formed in 1997 with the acquisition of Fielder’s Choice
Direct, the ninth largest hybrid seed company in the U.S.
Landec Ag, based in Monticello, Indiana, sells a
comprehensive line of hybrid seed corn to more than 12,000
farmers in over 40 states through its unique electronic,
direct marketing and consultative selling approach. This
direct-to-the-farm marketing approach allows Landec Ag to
bypass the traditional and costly farmer-dealer system used
by most other seed companies.
In
addition, Landec Ag sells its proprietary Intellicoat seed
coatings to farmers and seed companies. Landec Ag’s Early
Plant corn is designed to allow corn farmers to safely and
reliably plant hybrid corn three to four weeks earlier than
normal, as the Intellicoat coating prevents germination
until the soil reaches the optimal soil germination
temperature. Landec Ag also sells a delay coating, called
Pollinator Plus®, to seed companies which delays
the seed germination of inbred corn, thus extending the
pollination window and reducing risks and increasing yields
for the seed companies in the production of hybrid seed
corn.
About Landec Corporation
Landec
Corporation designs, develops, manufactures and sells
temperature-activated and other specialty polymer products
for a variety of food, agricultural and licensed partner
applications. The Company’s temperature-activated polymer
products are based on its proprietary Intelimer®
polymers which differ from other polymers in that they can
be customized to abruptly change their physical
characteristics when heated or cooled through a pre-set
temperature switch.