Bayer CropScience and California Planting Cotton Seed Distributors (CPCSD), California, have signed an agreement to bring the assets of CPCSD into Bayer CropScience. CPCSD is a leading developer, producer and distributor of high quality cotton planting seeds in California. The parties intend to close the transaction, which is subject to CPCSD approval, by the end of 2006.

With its FiberMax® brand, Bayer CropScience is the second largest cotton seed supplier in the United States. By acquiring the assets of CPCSD, the company can enhance its growing FiberMax® cotton seed business by gaining access to the high quality cotton seed market in California. CPCSD’s high quality fiber varieties complement Bayer CropScience’s FiberMax® varieties which are both sought after by spinners. Bayer CropScience can furthermore broaden its germplasm base as the CPCSD owned cotton varieties will add diversity to the FiberMax® germplasm.

Mike Gilbert, Global Cotton Seed Manager of Bayer CropScience said: “Acquiring the assets of CPCSD will be an excellent strategic fit for our cotton strategy. We will now be able to offer to the cotton producer a more comprehensive cotton product portfolio including varieties with high yields and high quality fiber, important agronomic traits and complementary crop protection products. We are proud that we can build on the strong historic roots of CPCSD with their invaluable experience in cotton research and development.”

Bill Van Skike, President of CPCSD adds: “We are convinced that under the roof of Bayer CropScience our research and business activities can continue towards a successful future in a profitable and growing cotton business. Our activities will be an important prerequisite for the development of new cotton varieties with outstanding yield and fiber.”