KWS closes sale of corn business in South America

Date:08-05-2024

KWS SAAT SE & Co. KGaA ("KWS") has closed the sale of its South American corn business to GDM in accordance with the agreement reached on March 25, 2024. The transaction has recently been approved by the relevant antitrust authorities, with the volume ranging in a mid-three-digit million Euro amount.

The transaction will have a significant positive impact on key financial indicators of the KWS Group. Since the majority of the proceeds from the sale are to be used to reduce debt, KWS anticipates a significant improvement in financial leverage (net debt/EBITDA) and the equity ratio as well as a significant decrease in interest expenses in the future.

GDM initiates the formal integration process of KWS corn assets in South America

Following the approval of the Administrative Council of Economic Defense (CADE) in Brazil, GDM has initiated the formal integration process of KWS corn assets in South America. This is a significant milestone for the company's global leadership in row crop genetics.

Founded in Argentina 42 years ago, GDM has evolved and expanded its presence in more than 15 countries, consolidating itself as a research and development company with a focus on innovating genetic improvement of row crops.

"This expansion not only strengthens our operational capacity, but also our commitment to excellence and innovation in agriculture," said Ignacio Bartolomé, CEO of GDM.

With global leadership in soybean cultivation, in 2023 GDM strengthened its position in wheat by acquiring the Brazilian company Biotrigo. Following the integration of KWS corn assets in South America, GDM will accelerate its growth and expand its presence in the corn market, becoming a major player in genetics in South America.

"The integration process will be carried out gradually and carefully. The transition will be organized and beneficial, both for our employees and for our customers and partners. Together, combining our strengths, we will build a stronger and broader platform that will enable us to reach new heights and continue sustainably contributing to row crop productivity. We thank our employees, customers and partners for their continued support and trust in GDM. We remain committed to our core values and to the corporate culture that characterizes us, focused on innovation and a collaborative approach," concluded Bartolomé.

The incorporation of KWS operations in Brazil and Argentina to GDM also reinforces the group's commitment to agricultural producers. This investment signals a greater investment in R&D programs for the continuous evolution of corn genetics, using the most modern technological tools and resulting in more products for the various solutions that producers and the agribusiness chain needs.

The KWS corn assets integration in South America involves about 1600 employees who will provide talent, vision, expertise and knowledge in plants genetics to helping solve South American agriculture challenges.

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