SANW signs a significant alfalfa agreement with a major agricultural distribution dealer

By Ian Gilson PhD, CFA

NASDAQ:SANW

On May 30, 2017 S&W Seed (SANW) announced that it had entered into a distribution agreement with Wilbur-Ellis Agribusiness.

Founded in 1921 Wilber-Ellis is a major distribution company, marketing agricultural products, animal feed and specialty chemicals through more than 160 retail branch locations across the U.S.. Total revenue exceeds $3 billion with the agricultural business accounting for over 67% of revenue.

The agreement is for S&W Seed to supply Wilbur-Ellis with its full range of alfalfa seed varieties, both dormant and non-dormant and including S&W’s recently announced Roundup Ready varieties.

S&W will also supply seeds for Wilbur-Ellis’ private label brand, Integra.

This agreement will expand S&Ws marketing reach across more of N. America than it currently does and could be a major source of organic growth in coming years.

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