Hicks, Muse, Tate & Furst Incorporated, a leading private investment firm, and Emergent Genetics, Inc. today announced that they have acquired Produsem, S.A., of Pergamino, Argentina, that country's leading wheat seed producer. 

Terms of the transaction were not disclosed. Emergent Genetics, which invested in the transaction along with Hicks Muse, is Hicks Muse's management affiliate for transactions in the seed and biotech industries. 

Founded in 1962, Produsem commands a 35% market share of Argentina's wheat seed market and also has significant presence in alfalfa, corn and sunflower seed markets. In combination with
Indusem, a Chilean contract grower acquired by Hicks Muse and Emergent Genetics in 1999,
Produsem will be the platform for the creation of a major South American seed company. 

Charles W. Tate, a Partner of Hicks Muse, said: "The acquisition of Produsem is another strong
addition to our international seed portfolio, which now includes five market-leading companies on
four continents. Produsem is the first seed producer we have acquired with a focus on wheat, the
last major field crop to benefit from biotechnological advances. Given its strong market position, we
believe that Produsem is an outstanding growth platform that will begin to realize its potential as it
begins to utilize the hybrid technologies of major multinational biotechnology companies.'' 

"Hugo Besana and his colleagues have built an outstanding seed production enterprise in
Argentina,'' said Mark W. Wong, Managing Director of Emergent Genetics. "We look forward to
working with them to implement new strategies designed specifically for Produsem's business and to share experience we have gained through our work with other companies in the Hicks
Muse/Emergent Genetics seed portfolio.'' 

Hugo Besana, General Manager of Produsem, said: "In a short period of time, Hicks Muse and
Emergent Genetics have distinguished themselves as one of the world's leading investors in the seed industry. Their investment in Produsem is a vote of confidence in our strong market position and significant growth potential.'' 

The acquisition of Produsem is Hicks Muse's fifth 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 Ltda., a Chilean seed
production company. In December 1999, it acquired Monsanto Company's Stoneville Pedigreed
Seed Company. In January 2000, it acquired Mahendra Hybrid Seeds Company Ltd., one of
India's largest hybrid seed companies. 

Emergent Genetics is a firm whose principals have been actively involved in the seed and biotech
industries for more than 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 325 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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