Monsanto Buys WestBred Wheat Assets For $45 Million

   DOW JONES NEWSWIRES 
 

Monsanto Co. (MON) said it acquired the assets of WestBred LLC for $45 million as it looks to expand its seeds and traits portfolio to include wheat.

The move comes after a three-year commodities boom ended last year. Though prices are down dramatically since last summer, they remain historically high. Monsanto has been looking to biotechnology research for future growth amid heightened competition and expectations that its Roundup herbicide unit's growth may fade after this year.

Montana-based WestBred specializes in wheat germplasm, the crop's seed genetic material. Monsanto said the investment would boost the growth of its seeds and traits platform.

"The U.S. wheat industry has come together to call for new technology investment, and we believe we have game-changing technologies - like our drought-tolerance and improved-yield traits - that can meaningfully address major challenges wheat growers face every season," said Carl Casale, Monsanto executive vice president of global strategy and operations.

Monsanto said it would use WestBred's existing breeding capabilities and commercial operations as the centerpiece of its wheat platform.

Monsanto said because the deal represents a long-term investment in research and development, it doesn't expect it to add to earnings until the middle to later part of next decade.

Monsanto shares closed Monday at $73.55 and were inactive premarket Tuesday. The stock is down 38% the past year amid struggles at Monsanto's herbicide operations.

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; [e-mail]