Monsanto to Sell Part of Kelco

Monsanto (St. Louis) is planning to sell Kelco's San Diego-based kelp harvesting and processing unit, reports the San Diego Union and Tribune. According to the company, this portion of Kelco—which extracts alginates from kelp—no longer fits with Monsanto's transformation under chairman and CEO, Robert Shapiro. The company plans to keep Kelco's biogum business, which makes xanthan gum and related ingredients.

Company representatives are optimistic about finding a buyer who will keep the plant operational. The list of prospective buyers includes Pronova Biopolymer of Norway, Danisco of Denmark and SKW, division of Viag, a German conglomerate. Other bidders could surface in China, Japan and South America. Monsanto said its kelp processing facility in Girvan, Scotland, will be sold as part of the transaction.

After acquiring Kelco in 1995, Monsanto merged the company with Chicago-based NutraSweet. As the company refocused on its core agricultural biotechnology, food and pharmaceuticals business, they decided to de-emphasize support for Nutrasweet-Kelco. In December 1998, Crain's Chicago Business reported that Monsanto may be planning to sell the entire subsidiary. (See related article)