An Australian acquisition makes S&W Seed Company the largest non-dormant alfalfa seed company in the world, according to Mark Grewal, its president and CEO.
In April, S&W Seed, Five Points, CA, bought Seed Genetics International Pty Ltd, (SGI) a breeder, producer and marketer of proprietary, non-dormant alfalfa seed varieties based in Adelaide, South Australia.
“With production in the San Joaquin and Imperial valleys of California and now Australia, the company is better able to meet the needs of its customers around the globe through a more diversified and year-round seed production schedule, as well as the integrating of two world-class breeding and sales organizations,” points out Grewal.
“The sales channels that S&W and SGI sell into are highly complementary, with very little overlap in customers.”
SGI controls about 60% of Australia’s production of alfalfa seed through about 17,000 acres of irrigated farmland and 12,000 acres of non-irrigated farmland. Its proprietary, non-dormant alfalfa seed varieties are now available for sale by S&W, nearly doubling its seed available for sale in 2013.
The purchase price, of about $16.7 million, consists of 864,865 shares of S&W common stock valued at $8.7 million, $5 million in cash and $3 million in the form of a three-year promissory note.