PGG Wrightson buys northern Aust tropical seeds business

PGG Wrightson buys northern Australian tropical seeds business

May 10 (BusinessDesk) - PGG Wrightson, the rural services company controlled by Agria Corp., has bought Southedge Seeds Pty. of northern Australia.

Southedge Sees is located in Mareeba on the Atherton Tablelands of northern Queensland, and is Australia's main tropical pasture seed production area said John McKenzie, group general manager of Wrightson's AgriTech division.

Wrightson has been established in Australia for 75 years and recently bought South Australia's Keith Seeds.

"It will expand our presence in northern Australia and provide production, processing and export capabilities across a wide range of tropical species," McKenzie said.

Chinese seeds and agricultural research company Agria recently spent $144 million to purchase 50.01% of Wrightson five months after its bid was launched.

Wrightson obtains a range of Southedge Seeds' strategic assets though its Australian subsidiary including seed processing and coating facilities and a cold storage set up.

Southedge also has a patented seed de-hulling and coating technology called 'Envirogro', McKenzie said. The company has a number of plant breeders' rights for tropical cultivars, as well as export and domestic sales capability and expertise in tropical species.

The purchase price was undisclosed as it will not have a material effect on Wrightson's performance, and the statement wasn’t lodged with the stock exchange.

"While PGG Wrightson seeds Australia is the market leader in temperate pasture seeds in Australia, this acquisition provides the platform for growth into the tropical market segment," McKenzie said.

All Southedge staff will be retained.

Wrightson shares rose 2% to 52 cents in trading today, and have dropped 9.1% this year.

(BusinessDesk)

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