Nufarm Limited announced today that it has reached agreement on terms for the sale of its Florigene biotechnology subsidiary to the Japanese company, Suntory Limited. The sale is subject to final approval by Florigene shareholders later this month.

Florigene is a Melbourne based company involved in the development and commercialisation of genetically engineered plants. Nufarm took a majority ownership (approximately 90%) in Florigene in early 2000. Florigene has been a participant with Suntory in a joint venture which successfully commercialised the world’s first genetically modified (GM) flowers, a range of novel coloured carnations.

Nufarm’s Managing Director, Mr Doug Rathbone, said the company’s research and development program is now firmly focused on Nufarm’s core crop protection business, and the Florigene program is outside of that scope.

“Our involvement with Florigene has been valuable in allowing us to assess opportunities and appropriate positioning for Nufarm in biotechnology, but we do not see basic research in the GM area as the way forward for Nufarm. ”We have an excellent strategic position in the Nugrain joint venture with Australian grain handlers and major rural distributors, and it will be at the marketing end of biotechnology developments that Nufarm will have a potential role.” Mr Rathbone said Suntory has a major international position in the flower business, and Florigene will be an excellent fit.

“The ongoing development programs will require a substantial investment and Suntory has the relevant focus and commitment to provide that support.”

The sale proceeds will approximate Nufarm’s net book value on the business, which includes the initial acquisition costs.