S&W Seed, Corteva Agriscience in New Alfalfa Agreement

By Chris Wack

S&W Seed Co. (SANW) and Corteva Agriscience, a division of DowDuPont (DWDP), said Thursday that they have entered into a new alfalfa agreement which terminates and replaces a December 2014 agreement with Pioneer Hi-Bred International.

In a release, the companies said as part of the new agreement, S&W will receive $45 million in cash at closing plus $25 million in payments over regularly scheduled dates concluding in February 2021.

Pioneer will exit its 2014 agreements and related obligations and receive a fully pre-paid, exclusive license to produce and distribute certain S&W-owned varieties. In addition, as part of the agreement terms above, Pioneer will receive seed inventory from S&W with a book value of $25 million and assume certain grower production contract rights and obligations.

S&W will retain ownership of all assets originally acquired in the December 2014 asset purchase transaction between S&W and Pioneer, including alfalfa varieties and germplasm, research and development capabilities, and production facilities.

Shares of S&W were up 44% to $3.60 premarket.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

May 23, 2019 08:23 ET (12:23 GMT)

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