Monsanto's sale of Stoneville Pedigreed Seed Company is now final. Closing yesterday on the agreement signed in early August, the new owners are Hicks, Muse, Tate & Furst of Dallas, Texas, and Emergent Genetics, Inc. of Boulder, Colorado. According to Stoneville president Thomas F. "Bud" Hughes, the announcement is exciting for Stoneville and good news for American cotton producers.

"This is not the kind of merger and acquisition we have grown accustomed to watching, where one giant company swallows another and employees, products and services begin to disappear," Hughes said. "Our new owners plan to operate Stoneville as an independent cotton seed
company led by the present management team with a continued commitment to providing new variety and technology choices for cotton growers. The financial strength and industry relationships of this new alliance will allow us to continue to compete aggressively in the cotton seed market and will provide additional resources to do so. Our headquarters will continue to be in Memphis, and all Stoneville employees are keeping their jobs."

Hicks, Muse, Tate & Furst is one of the United States' largest private equity investment firms. Emergent Genetics is the management affiliate of Hicks-Muse focused on the seed and biotechnology industry. "The management of Emergent Genetics is experienced in the seed business, plus they have excellent relationships with many of the biotechnology providers around the world," Hughes said. "Because Emergent Genetics is independent of any of the basic biotech trait providers, it is well-positioned to license multiple value-added traits from different companies for Stoneville to develop and commercialize into its product line."

The Stoneville purchase represents the third seed company to be acquired by the Emergent/Hicks-Muse team. Principals of the two parent firms will serve on Stoneville's board of directors along with Hughes and several independent directors.

Hughes confirmed that Stoneville will have marketing rights to sell Bollgard® and Roundup Ready® technology in their varieties and the opportunity to develop and market future Monsanto biotech traits, along with those of other biotech trait providers. Stoneville will also continue to research, produce and market varieties with BXN® technology including the popular BXN 47 for the picker market and BXN 16 for the stripper market. "Beyond 2000, we will be the only company with a complete line of cotton seed products, including conventional varieties, Bollgard, BXN, Roundup Ready and stacked Bollgard/BXN and Bollgard/Roundup Ready genes," he said.

The Stoneville president concluded that American cotton growers should be heartened by the announcement. "This deal assures an independent Stoneville that will continue to devote its full and undivided attention to competing in the cotton seed business. Our unique combination of capital, expertise and contacts places Stoneville in a very strong position to grow and add value to our business. By investing in Research & Development, quality facilities and top-class people, we will continue our commitment to deliver more product choices and better service to our customers. We will always be champions for breeding improved cotton varieties, and with new biotechnology traits to combine with those varieties, we expect to help cotton growers increase productivity and lower production costs."

Stoneville Pedigreed Seed Company is the second largest breeder, producer and marketer of cotton planting seeds in the United States, with seed production facilities in Arizona, Mississippi and Texas and research and development sites in Arizona, Georgia, Mississippi, Tennessee, Texas and South Africa. Stoneville has been breeding cotton since 1922 and is respected worldwide for its contributions to the cotton industry, including introduction of the world's first genetically engineered cotton seed.

BXN is a registered trademark of Rhone Poulenc Ag Company.
Bollgard and Roundup Ready are registered trademarks of Monsanto Company

Company news release
N2358