EQS-Adhoc

KWS SAAT SE & Co. KGaA: KWS sells corn business and licenses for KWS breeding material in South America

EQS-Ad-hoc: KWS SAAT SE & Co. KGaA / Key word(s): Disposal KWS SAAT SE & Co. KGaA: KWS sells corn business and licenses for KWS breeding material in South America 25-March-2024 / 21:27 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Publication of insider information in accordance with Article 17 of EU-Regulation 596/2014

KWS sells corn business and licenses for KWS breeding material in South America

KWS SAAT SE & Co. KGaA (ISIN DE0007074007) Einbeck (Germany), March 25, 2024 – KWS SAAT SE & Co. KGaA ("KWS", together with its affiliated companies "KWS Group"), today signed agreements for the sale of its South American subsidiaries KWS Argentina S.A., KWS Serviços e Participações South America Ltda. and KWS Sementes Ltda., as well as licenses for access to breeding material from the KWS Group for use in Brazil, Argentina, Uruguay and Paraguay to GDM based in Buenos Aires, Argentina ("GDM") ("Transaction").

With the transaction, the commercial South American corn business and licenses will be sold. The transaction volume amounts to a mid-three-digit million Euro amount. 

The transaction will have a significant positive impact on key financial indicators of the KWS Group. Since the majority of the proceeds from the sale are to be used to reduce debt, the Management Board of the General Partner of KWS SAAT SE & Co. KGaA, KWS SE ("Executive Board"), anticipates a significant improvement in financial leverage (net debt/EBITDA) and the equity ratio as well as a significant decrease in interest expenses in the future.

In the 2022/2023 financial year, the divested business activities generated sales of around EUR 320 million with an average EBIT-margin of approximately 10%. With the completion of the transaction, KWS will significantly reduce its business activities in South America.

The sale takes place against the backdrop of the assessment of the long-term opportunities and risks of the South American corn business for the implementation of KWS's strategy and sustainable orientation, as well as an increased focus on profitable growth.