Dow AgroSciences to Acquire Dairyland Seeds

Deal allows Dow to strengthen market penetration.

On Friday, Indianapolis, Ind.-based Dow AgroSciences announced it would be acquiring West Bend, Wis.-based Dairyland Seeds and Bio-Plant Research, Camp Point, Ill., a business affiliated with Dairyland Seed with a primary focus on licensing of soybean, alfalfa and wheat germplasm. Dairyland Seeds will operate as a stand alone seed division under Dow. All of Dairyland Seeds' research stations, employees and management will remain in place at this time. Dairyland Seeds will continue to be sold under the same brand and network dealers will continue to only sell Dairyland Seeds. The closing is expected later this month. Additional terms of the agreement were not disclosed.

Tom Strachota, CEO of Dairyland Seeds, explained his organization has always focused heavily on researching and developing strong genetics. However, it became evident that growers wanted traits to pair with strong genetics and the company of his size was unable to devote the necessary resources to both germplasm R&D efforts and biotechnology. Strachota said the agreement gives growers access to Dow's upcoming technologies including SmartStax (eight trait stacked corn), Dow Herbicide Tolerance, Herculex and other future technologies.

Ben Kaehler, commercial leader for Dow AgroSciences' Seed Affiliates and Traits Licensing, added Dairyland Seeds' geographic overlay complements Dow's other seed affiliates Mycogen and Triumph. Dairyland has a strong presence in the northern Midwest; Mycogen in the Western Corn Belt and Triumph in the South. In addition, in areas where there is overlap, Kaehler said it offers significant opportunities to strengthen market penetration in those areas.

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