Scotts Miracle-Gro agreed on Wednesday to pay $300 million to Monsanto to expand its exclusive rights to the weedkiller Roundup.
The Marysville-based company has held marketing rights to Roundup in the lawn-and-garden sector since 1999; Monsanto controls sales of the popular herbicide for agricultural uses. The new agreement allows Scotts to sell Roundup in additional foreign markets and offer it through its Scotts Lawn Service.
“While the original agreement with Monsanto has served us well for more than 15 years, these changes provide us with exciting growth potential and a more secure future,” said Jim Hagedorn, CEO of Scotts, in a news release. “We now have a greater ability to control our own destiny and better manage our portfolio to best serve our shareholders.”
Scotts sells Roundup through lawn-and-garden outlets in the U.S., Australia, Austria, Belgium, Canada, France, Germany, the Netherlands and the United Kingdom. New markets included in the agreement are Hungary, New Zealand, Portugal, Russia, South Africa, Spain, Switzerland and Ukraine.
Scotts also gains the right to expand into new markets for Roundup, including China and South America.
Roundup contributed more than $45 million in sales to Scotts in its latest quarter, which ended on March 28.
In addition to expanded rights to sell Roundup, Monsanto also agreed to give Scotts a first look at new technologies related to Roundup and the ability to alter the product’s formula.
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