February 26, 2008

PGG Wrightson Seeds seeks to buy Australia's Keith Seeds

PGG Wrightson Seeds, a unit of PGG Wrightson, has made a conditional offer to purchase 100 percent of the shares in South Australian seed group Keith Seeds Pty Ltd, the company said Tuesday (February 26, 2008).

The proposed purchase "allows PGG Wrightson Seeds to expand into new sales regions with a wider product range, and with intellectual property and grower networks in lucerne and annual legumes. This is a key strategy in our global growth aspirations," said PGG Wrightson Seeds General Manager John McKenzie in a statement.

Keith Seeds is a breeder, producer, processor and marketer of lucerne, pasture and oilseeds, and specialized pulse and legume products. The company has grower relationships and global sales channels in 42 countries.

According to PGG Wrightson Seeds, the share offer had been accepted by Keith Seed's board members holding 79 percent of the shares. If the remaining 21 percent are in favor, settlement would likely take place in May 2008.

It provided no details about the value of the deal.