KWS SAAT SE & Co. KGaA / DE0007074007

KWS SAAT SE & Co. KGaA: KWS sells corn business and licenses for KWS breeding material in South America

EQS-Ad-hoc: KWS SAAT SE & Co. KGaA / Key word(s): Disposal
KWS SAAT SE & Co. KGaA: KWS sells corn business and licenses for KWS breeding material in South America

25-March-2024 / 21:27 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Publication of insider information in accordance with Article 17 of EU-Regulation 596/2014 KWS sells corn business and licenses for KWS breeding material in South America KWS SAAT SE & Co. KGaA (ISIN DE0007074007) Einbeck (Germany), March 25, 2024 – KWS SAAT SE & Co. KGaA ("KWS", together with its affiliated companies "KWS Group"), today signed agreements for the sale of its South American subsidiaries KWS Argentina S.A., KWS Serviços e Participações South America Ltda. and KWS Sementes Ltda., as well as licenses for access to breeding material from the KWS Group for use in Brazil, Argentina, Uruguay and Paraguay to GDM based in Buenos Aires, Argentina ("GDM") ("Transaction"). With the transaction, the commercial South American corn business and licenses will be sold. The transaction volume amounts to a mid-three-digit million Euro amount.  The transaction will have a significant positive impact on key financial indicators of the KWS Group. Since the majority of the proceeds from the sale are to be used to reduce debt, the Management Board of the General Partner of KWS SAAT SE & Co. KGaA, KWS SE ("Executive Board"), anticipates a significant improvement in financial leverage (net debt/EBITDA) and the equity ratio as well as a significant decrease in interest expenses in the future. In the 2022/2023 financial year, the divested business activities generated sales of around EUR 320 million with an average EBIT-margin of approximately 10%. With the completion of the transaction, KWS will significantly reduce its business activities in South America. The sale takes place against the backdrop of the assessment of the long-term opportunities and risks of the South American corn business for the implementation of KWS's strategy and sustainable orientation, as well as an increased focus on profitable growth. All business activities in the vegetable and sugarbeet segments as well as the counter-seasonal breeding programs for the European corn and sugarbeet portfolio in Brazil, Chile and Peru will remain part of KWS. The European corn business is also not affected by the transaction. KWS emphasizes the relevance of its positioning in this market segment, including its leading position in silage corn. Regarding the North American corn business, KWS is exploring various strategic options. The transaction is subject to customary regulatory approvals and closing conditions. The transaction is expected to close during the second quarter of 2024. GDM is a global plant genetics company (primarily wheat and soybean). Based in Argentina, the family-owned company employs 1,800 people in 15 countries. Explanations of the financial ratios used: EBIT: Earnings before interest and taxes EBIT-margin: EBIT as a percentage of sales EBITDA: Earnings before interest, taxes, depreciation and amortization Net debt: Sum of current and non-current financial liabilities less cash and cash equivalents   Contact:
Notifying person: Peter Vogt
Head of Investor Relations
Tel.: [phone]
[e-mail]
KWS SAAT SE & Co. KGaA
www.kws.de

End of Inside Information

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25-March-2024 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

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Language:	English
Company:	KWS SAAT SE & Co. KGaA
	Grimsehlstraße 31
	37555 Einbeck
	Germany
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.kws.de
ISIN:	DE0007074007
WKN:	707400
Indices:	S-DAX
Listed:	Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1866839

End of Announcement	EQS News Service

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1866839  25-March-2024 CET/CEST