| Hicks, Muse, Tate & Furst and Emergent Genetics
acquire majority stake in Mahendra Hybrid Seeds Company Ltd., one of India's
largest hybrid seed companies |
Boulder, Colorado and
Jalna, India
February 2, 2000
Hicks, Muse, Tate & Furst Incorporated, of Dallas, Texas, Emergent Genetics,
Inc., of Boulder,
Colorado, and Mahendra Hybrid Seeds Company Ltd., of Jalna, India, today announced that
Hicks Muse and Emergent Genetics have acquired a majority stake in Mahendra Hybrid Seeds
Company Ltd., of Jalna, India, one of that nation's largest hybrid seed companies. Terms of the
transaction were not disclosed. Emergent Genetics, Inc., which invested in the transaction along
with Hicks Muse, is Hicks Muse's management affiliate for transactions in the seed and biotech
industries.
Mahendra, which has been in the seed business since 1971, is one of the largest hybrid seed
companies in India, with particular strength in cotton, sorghum, and pearl millet. The company
produces a diverse selection of hybrid and improved variety seeds, from both proprietary and
public-bred lines. Mahendra's main objective is to develop products that increase the efficiency
and profitability of farmers in India.
Charles W. Tate, a Partner of Hicks, Muse, Tate & Furst, said: "The acquisition of Mahendra
reflects the continuing implementation of our buy-and-build strategy in the international seed
business. As one of the largest and most successful hybrid seed companies in India, Mahendra will
be a valuable addition to our rapidly expanding seed company portfolio. Moreover, we view
Mahendra as an excellent platform from which to build a larger seed business in India. In that
regard, the management team of Mahendra will be working closely not only with Emergent
Genetics but also with Stoneville Pedigreed Seed Company, which we acquired from Monsanto
in December, to help Mahendra become India's premier cotton seed company."
"Mahendra's senior management team, led by Directors R. V. Mundada and K. R. Chopra, is
highly regarded in India's seed industry and has a long track record of growth and sustained
profitability," said Mark W. Wong, Managing Director of Emergent Genetics. "We look forward
to working with them and Stoneville to help Mahendra realize its strategic, operational and financial
objectives."
Mahendra Directors R. V. Mundada and K. R. Chopra said: "Hicks Muse and Emergent
Genetics have established an excellent reputation as investors and partners who can play a key
role in helping their portfolio companies accomplish their business goals. We are very happy to join
the Hicks Muse and Emergent Genetics 'family' and look forward to a long and successful
relationship with them as well as Stoneville as investors, advisers and colleagues."
The acquisition of Mahendra is Hicks Muse's fourth in the seed industry, all in partnership with
Emergent Genetics. In November 1998, Hicks Muse acquired L. Daehnfeldt A/S, a Danish
horticultural seed company. In February 1999, the firm acquired Indusem S.A., a Chilean seed
production company. In December 1999, it acquired Monsanto Company's Stoneville Pedigreed
Seed Company.
Emergent Genetics is a firm whose principals have been actively involved in the seed and biotech
industries for over 20 years. It has combined its years of experience in the agricultural industry with
the financial strength and development capabilities of Hicks, Muse, Tate & Furst. Together, they
focus on direct equity investments in established seed and biotech companies, and then grow them
with additional capital investment. They also provide access to new seed traits through
biotechnology and the financial, integration and operation expertise needed for expansion and
growth.
Since its formation in 1989, Hicks, Muse, Tate & Furst Incorporated has completed or currently
has pending more than 300 transactions with a total capital value of approximately $40 billion.
Headquartered in Dallas, the firm also has offices in New York, London and Buenos Aires. Company news release
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