Corteva Inc., the Indianapolis-based seed and insecticide giant, is buying Stoller Group, a Houston company that makes plant hormones, nutrients and microorganisms, for $1.2 billion.
The two companies said Wednesday they have signed a definitive agreement for the deal, and the purchase price will be paid at closing, which is expected to be in the first half of 2023.
Stoller, founded in 1970, has operations in more than 60 countries and forecasted 2022 sales of more than $400 million, the companies said. It is one of the largest independent plant biologicals companies in the industry. Agricultural biologics are products derived from naturally occurring microorganisms, plant extracts, or other organic matter, to boost plant growth and efficiency.
“Biologicals provide farmers with sustainability-advantaged tools that complement crop protection technologies, and collectively, can work to address global challenges around food security and climate change,” Corteva CEO Charles Magro said in written remarks.
The acquisition is designed to accelerate Corteva’s biologicals business and make it one of the largest players in the market.
The biologicals market is expected grow in the high single digits annually through 2035, representing about 25% of the overall crop protection market, the companies said.
Stoller is the second biological acquisition for Corteva this year, following the purchase of Symborg, based in Murcia Spain, for an undisclosed price.