May 15, 2017

U.S.-based, family-owned agribusiness Hartung Brothers Inc. (HBI) has agreed to acquire Syngenta’s existing operations in Hawaii on the islands of Oahu and Kauai for an undisclosed amount.

Established in 1975 in Madison, Wisconsin, HBI operates seed facilities in Wisconsin, Illinois, and Iowa, and has vegetable production operations across six U.S. states and South West Ontario, Canada, producing green beans, cucumbers for pickling, and carrots. The company also offers agriculture contracts for beets, carrots, cucumbers, lima beans, peas, snapbeans, sweet corn, and seed corn to both farmers and processors, according to the company website. It is through this business model that HBI has provided seed corn production, processing and distribution services to Syngenta and legacy Syngenta companies on the mainland U.S. since the 1980s.

“Our company is very much a family business rooted in the work ethic instilled in us by our parents Lorna and Galen Hartung,” said Dan Hartung, president of Hartung Brothers, Inc. “We are excited about the opportunities this acquisition will bring to our current customers. It will also allow us to expand our customer base with new capabilities. We are very impressed with the current Hawaii management team and employees. The dedication, knowledge, and pride shows in all they do.”

The deal includes Syngenta’s operations in the state of Hawaii, which the company has run since the late 1960s including approximately 4,000 acres for inbred and hybrid seed production at sites on Oahu and Kauai, and more than 100 full-time employees and additional seasonal contract employees. Under the terms of the agreement, Syngenta will contract existing seed production activities being conducted in Hawaii from Hartung.

Syngenta initially announced its intention to sell its Hawaii operations back in August 2016, amid negotiating a $43 billion takeover by China National Chemical Corp. (ChemChina). At the time, Syngenta would not disclose the driving force behind the choice to sell its Hawaiian assets other than company spokesman Angus Kelly telling the Honolulu Star-Advertiser that the move was due to “a change of approach to the business model”.

Food Navigator reports that Syngenta and ChemChina have announced that  82 percent of Syngenta’s shareholders now support ChemChina’s $43 billion takeover, and that an additional acceptance period is beginning through which Syngenta shareholders that haven’t tendered their stock as of yet may do so at $465 per share.

Syngenta CEO Erik Frywald, who will remain in his position after the takeover, expressed to the  Financial Times that he expects U.S. and EU regulators to approve the deal within weeks, and foresees rapid expansion for Syngenta in the Chinese market through leveraging ChemChina’s funding and domestic market knowledge and experience.

The company also sees itself remaining committed to advancing agricultural innovation in Hawaii given its stable weather, good soil, and level of expertise among its people.

“We are extremely pleased to have this agreement with Hartung Brothers for our Hawaii sites. The goal has been to have our employee talent base and facilities maintained and to contract work with the new owner, and that will be achieved,” said Ed Aterna, head of global seed operations, production & supply with Syngenta.

Closing of the deal for its Hawaii operations is expected to occur in the second quarter of this year.

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.