Nufarm Buys US Sunflower Seed Company

Submitted by Share Market Writer on 1 December, 2011 - 17:38

Australian agricultural chemicals maker Nufarm (NUF) expands its seeds business by buying the American sunflower seed company Seeds 2000 for $53.83 million. Sunflower is an important oilseed and snackfood crop to the company as it produces 32 million metric tonnes of grain every year.

Seeds 2000 is a Minnesota-based company that is engaged in sunflower seed research, hybrid development and production. The American sunflower company has annual revenue of US$20 million. It is active in international activities, with sales operations in the US, Canada, China, Argentina and a number of European markets.

Nuseed, Nufarm's sunflower breeding operations, develops canola, sunflower and sorghum products, with market operations in California, Argentina and Australia. Nufarm's subsidiary gained $65.7 million revenue in the year ended July 31.

“Our seeds business is generating excellent returns for the company and this acquisition is a great fit with our existing operations,” said Nufarm Chief Executive Doug Rathbone.

Nufarm expects if first half profit to be in line with the $22.7 million it reported for the first half a year before.