Seminis to Be Acquired in $650-Million Deal

Oxnard-based Seminis Inc., the world’s largest seller of commercial fruit and vegetable seeds, said Friday that it would be bought out and taken private by units of Mexican agricultural firm Savia and San Francisco-based Fox Paine & Co.

Seminis, which is traded on Nasdaq, said the deal was valued at $650 million in stock and debt, but did not specify details.

Fox Paine would invest $222 million as part of the deal, said Andy Brimmer, an outside spokesman for the private equity firm. Savia would exchange its Seminis Class C preferred shares for Seminis common shares. Seminis shares then would be acquired for $3.40 each in cash, a 35% premium over their closing price of $2.51 on Friday, down 4 cents.

Alfonso Romo Garza, who chairs both Seminis and Monterrey, Mexico-based Savia, would remain as chairman and chief executive of Seminis, the company said. Dexter Paine, president of Fox Paine, would become vice chairman of Seminis.

Seminis, founded in 1994 with the acquisition of the Asgrow seed business from Upjohn Co., sells both hybrid and genetically engineered fruit and vegetable seeds to commercial growers and wholesalers in 150 countries.

Although it reported sales of $449.9 million last year -- about 20% of all world sales of fruit and vegetable seeds -- it lost $134.5 million because of restructuring costs and write-downs. For the fiscal third quarter ended June 28, the company reported earnings of $4.3 million on sales of $106.6 million.

Savia, which is part of a larger Mexican conglomerate, lost $264.9 million on sales of $690.4 million last year.

“We are very excited by the prospect of participating in the future growth of Seminis,” Paine said in a statement.

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Bloomberg News was used in compiling this report.