Dow Ag Makes Acquisition

• Posted by ToddSullivan
• on July 15th, 2009

Dow Ag (DOW) is not acting like a company that is up for sale…

The Indianapolis Business Journal Reports:

Dow Agrosciences LLC said today it is acquiring the majority of assets of Illinois-based seed corn company Pfister Hybrids.

A sale price was not disclosed.

Under the terms of the agreement, Indianapolis-based Dow AgroSciences, a subsidiary of Dow Chemical Co. in Michigan, will acquire the Pfister brand and the sales and marketing areas, as well as the warehousing and administrative services. The Pfister brand will continue, and the company still will be headquartered in El Paso, Ill.

Pfister President Linda Brown will assume the title of general manager.

The addition of Pfister Hybrids will further expand Dow AgroSciences’ current seeds business in the United States as it anticipates introducing insect protection and weed control, and herbicide tolerance, technology within the next few years, the company said in a written statement.

“At Dow AgroSciences investing in innovation is the key to our future, and we look forward to building upon the Pfister tradition,” said Stan Howell, vice president, North America regional commercial unit for Dow AgroSciences.

Dow AgroSciences has global sales of $4.5 billion.

Pfister Hybrids was founded in 1936.

I’ve been adamantly opposed to a Dow Ag sale since it was first broached back in May. Since then Dow has risen funds through alternative channels and seems to be backing off the outright sale talk. These are all very good development.

So, what would be acceptable? A partial IPO of Dow Ag would do should it be absolutely necessary. What would be even better would be if they offered it to current shareholders first then sold any excess to the public (there would not be any).

Anyway, not often do we see a company about to be sold making acquisitions. That is the good news. It says to me that the “sale” of Dow Ag is becoming a more remote possibility as each days passes….

Disclosure (“none” means no position):Long Dow

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