Corteva makes major move into biologicals with deal to acquire Stoller

Corteva is making a major move to expand its biological crop input business, announcing an agreement to purchase Stoller Group — one of the largest biological companies in the agriculture industry.

The US$1.2 billion deal “reinforces Corteva’s commitment to providing farmers with biological tools that complement evolving farming practices and help them meet changing market expectations,” the company says.

“Biologicals provide farmers with sustainably-advantaged tools that complement crop protection technologies, and collectively, can work to address global challenges around food security and climate change. Stoller represents a leader in the biologicals industry given its commercial presence and market expansion potential, while also delivering attractive growth and operating margins,” said Chuck Magro, Corteva CEO, in a news release. “In combination with Corteva’s leading innovation organization, Stoller provides a platform for expanding and accelerating Corteva’s biologicals business to become one of the largest players in the rapidly expanding biologicals market.”

Stoller, which is based at Houston, Texas, has operations in more than 60 countries, with 2022 revenue forecast to exceed US$400 million.

In Canada, Stoller Enterprises’ head office is located at Regina, Sask. The company’s products include BioForge Advanced seed treatment and X-Cyte, a plant growth hormone product that’s marketed for reducing heat blast at crop flowering.

The deal is expected to be completed in the first half of 2023 following regulatory approvals and the usual closing conditions.

Corteva also announced the acquisition of Spanish biological company Symborg in September, and says it will “bring together the complementary commercial and technical strengths of Stoller and Symborg as part of its biologicals strategy.”

Corteva says it expects the biologicals market will see a growth rate in the high-single digits annually through 2035, and will account for approximately 25% of the overall crop protection market by 2035.