|Doyle Karr||Gracelle Gerber|
|+1-515-270-3428||+27 (0) 83-272-6373|
Agreement To Give Farmers More and Better Seed Choices, Increase Innovation
DES MOINES, Iowa, and JOHANNESBURG, South Africa, Sept. 15, 2010 – DuPont business Pioneer Hi-Bred, one of the world’s leading agricultural businesses, and Pannar Seed (Pty) Limited, a South African-based seed company with operations throughout Africa and other parts of the world, today announced an agreement for Pioneer to purchase a majority share of Pannar.
Financial terms were not disclosed for the agreement, which is subject to review by the South African Competition Commission and other countries’ regulatory agencies. Pending regulatory approvals, the deal is expected to close in early 2011. Pannar management, employees, facilities and brands will be retained.
“This is good news for our customers, for our employees and for South Africa,” said Brian Corbishley, chairman – Pannar. “Pioneer is the ideal partner for the long-term growth of our business. They’ll help us meet our customers’ increasing needs for better and higher-yielding products and services.”
“Our respect for Pannar, their people and their products runs deep,” said Paul E. Schickler, president – Pioneer. “Together with Pannar, we can increase investments in innovative products and services for farmers across Africa. This will enhance productivity, improve food security, and grow our businesses.”
The investment will allow each business to access additional crop areas, reach more customers and deliver improved seed products quicker than either can do on its own. Pannar receives access to Pioneer’s genetics library and its maize breeding and biotechnology capabilities which will benefit its African operations and its businesses in the United States and Argentina. Pioneer will tap into Pannar’s expertise and reach across Africa and its maize genetics developed specifically for the region.
With approximately 75 million acres1 (30 million hectares) available for maize production, Africa represents a significant opportunity for improved productivity. Average grain yields are just one ton per hectare, less than one-third of what is achieved in other developing regions and only one-fifth of yields in developed countries. In addition, maize seed demand is strong and growing. In South Africa alone, annual hybrid maize seed sales total about U.S. $250 million2.
This investment is part of the DuPont strategy to deliver innovations that address some of the world’s most important challenges, including the need for increased food production to feed the world’s growing population. In 2009, DuPont invested more than U.S. $700 million in research and development for increased food quantity and improved food quality.
Pannar Seed (Pty) Limited (www.pannar.com) was founded in 1958 in Greytown, South Africa, an agricultural community situated in KwaZulu-Natal, on the eastern seaboard of South Africa. Pannar is a South African based seed business with operations throughout Africa and internationally. It has its own seed businesses in nine countries in Africa, including South Africa, and sells through established marketing networks into nine other African countries. In addition to its extensive research infrastructure in Africa, it also conducts research and commercial activities in the U.S. and Argentina and has a genetics licensing business in Europe.
Pioneer Hi-Bred (www.pioneer.com), a DuPont business headquartered in Des Moines, Iowa, is the world’s leading developer and supplier of advanced plant genetics, providing high-quality seeds to farmers in more than 90 countries. Pioneer provides agronomic support and services to help increase farmer productivity and profitability and strives to develop sustainable agricultural systems for people everywhere. Science with Service Delivering Success™.
DuPont (www.dupont.com) is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 90 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.
Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
1 United States Department of Agriculture
2 South Africa National Seed Organization