GDM buys KWS' corn and sorghum business in South America

GDM reported that it acquired KWS' corn business in Brazil and Argentina. The transaction includes all KWS corn and sorghum breeding and sales activities in South America (Brazil, Argentina, Paraguay and Uruguay), as well as all corn and sorghum production plants in Brazil and corn in Argentina, involving around 700 employees.

"The combination of KWS' corn positioning together with GDM's knowledge in plant genetics, with a focus on soybeans and wheat, creates a unique synergy for our market position and the continued advancement of our company", said Ignacio Bartolomé, CEO of GDM .

According to a statement from the companies, GDM will continue and enhance the business developed by KWS. All vegetable, sugar beet activities and the genetic improvement programs of the European corn and sugar beet portfolio in Brazil, Chile and Peru will remain with KWS. The European corn business will not be affected by this transaction.

“In South America we have established a solid position in the corn market, something we are very proud of. However, to implement the strategic objectives of the KWS group with full strength and focus, we have decided that this is the appropriate time, in terms of business maturity, to find a partner who is in a solid position to take the corn business in South America to the next level. We are completely convinced that GDM is an assertive choice, both from a cultural perspective and what it represents for its business position. With GDM as the new owner, a strong player will emerge that seeks to grow even further in the South American soybean and corn market”, stated Nicolás Wielandt, member of the Executive Board, responsible for the corn business at KWS.

Details of the transaction and exact value of the acquisition were not revealed by the companies.