) recently-acquired subsidiary, The Climate Corporation entered
into an agreement with Solum, Inc. - a privately owned
agriculture technology company - to acquire the latter's soil
analysis business line. The financial details of the transaction
were not announced.
The deal will give Monsanto the right to use the Solum brand,
soil testing intellectual property, the soil test lab in Ames,
Iowa and Solum's No-Wait Nitrate platform. While the Ames lab
provides accurate and reliable mail-in sample services to measure
and manage soil fertility, No-Wait Nitrate platform offers
real-time measurement of soil nitrate levels from the edge of the
The acquisition will help Climate to provide complete farming
solutions to its customers, including optimization of crop yields
and efficient use of resources. Climate has also offered to
retain all the workers associated with Solum soil analysis
Monsanto acquired Climate in November last year. Climate
Corporation provides unique software and insurance products to
the farmers in order to protect and improve the various farming
operations. The acquisition has already been accretive to the
Monsanto reported improved year-over-year results for the
first quarter of fiscal 2014. Adjusted earnings per share came in
at 67 cents, up from 62 cents earned in the year-ago comparable
period. Revenues were $3.1 billion, up 6.9% year over year.
Based on the strong results, the company raised its outlook
for fiscal 2014. Earnings per share are expected in the range of
$5.00 to $5.20. On an as-reported basis, the company expects to
earn $5.02 to $5.22 per share.
Monsanto currently holds a Zacks Rank #3 (Hold). Some
better-ranked stocks in the industry include
The Scotts Miracle-Gro Company
Globe Specialty Metals, Inc.
International Flavors & Fragrances Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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