Oct 22, 2008
Syngenta Agrees to Buy Goldsmith SeedsSource: Syngenta, wire reports, staff reporting

Earlier this week, Syngenta announced it had signed an agreement to acquire Goldsmith Seeds for $74 million, on a cash and debt-free basis. Goldsmith breeds, produces and sells a broad range of pot and bedding products, including major crops such as cyclamen, impatiens and petunia. Syngenta will maintain the Goldsmith brand in the market under the Syngenta Flowers umbrella.

The agreement has been met with enthusiasm from both companies.

“The Goldsmith family has built up a world-class breeding company with an outstanding reputation that is known for its consistent quality,” said Robert Berendes, Syngenta’s head of business development. “This acquisition further strengthens our leadership position in the global flowers industry.”

Goldsmith President Joel Goldsmith echoed the positive sentiments of Syngenta’s management. “We are very excited about joining Syngenta,” he said. “The agreement will secure a robust future for Goldsmith products and employees as well as growth opportunities in a changing, consolidating environment.”

In a letter to industry partners, Syngenta Flowers President Gary Falkenstein acknowledged that the agreement would raise a lot of questions.

“To answer the most pressing, we assure you that Syngenta fully supports the open distribution channel through our broker networks and will keep those channels open for both Syngenta Flowers and Goldsmith Seeds,” Falkenstein wrote. “We would also like to assure you that this event will not change how we each fulfill this season’s orders – please continue to do business with Goldsmith Seeds and Syngenta Flowers, respectively, as you have in the past.”

The transaction is expected to close in the fourth quarter of 2008, pending regulatory approvals.

“There’s great energy. People are excited. We’ve got great relationships between our company and Goldsmith, and there’s more to come. It’s going to be a really good thing.” Suzanne McKee, Syngenta Flowers’ marketing and communications manager, told Lawn & Garden Retailer/GPN yesterday.

Goldsmith Seeds, headquartered in Gilroy, Calif., was founded in 1962. The Goldsmith family owns and operates the business, which has some 1,500 employees. The company has breeding and production facilities in Gilroy and production facilities in Guatemala. Reported sales in 2007-2008 were $50 million.

Syngenta Flowers, a worldwide leader in the pot and bedding plant industry, breeds and markets seeds, young plants and cuttings for the ornamental industry. In 2007, Syngenta reported flowers sales of $272 million.