In a potential two-stage deal, S&W Seed Company, which describes itself as the world's largest "non-dormant" alfalfa seed company, plans to acquire all of DuPont Pioneer's alfalfa production and research facilities assets, along with its conventional (non-GMO) alfalfa germplasm, for up to $49 million.

Closing of the first stage is expected to take place this year, provided all closing conditions including financing are met. DuPont Pioneer would continue to distribute the products up to 2024.

Terms of this stage foresee California-based S&W paying the DuPont-Pioneer joint venture $27 million in cash up front in addition to a promissory note in the principal amount of $10 million payable on Dec. 31, 2017.

The purchase price also includes a potential earn-out payment of up to $5 million based on sales of the acquired germplasm in the three years following the closing.

S&W, which said the transaction would make it world's largest producer of alfalfa seed, has also agreed - contingent on satisfaction of certain conditions - to purchase DuPont Pioneer's GMO alfalfa germplasm and related assets for an additional $7 million in cash by Dec. 29, 2017.

If this second stage is completed, the total purchase price for would rise to as much $49 million.

S&W's CEO Mark Grewal said the deal, which will join the largest "non-dormant" alfalfa seed company in the world and one of the leaders in the "dormant" alfalfa seed market, includes 15 seed varieties currently on the market and 60 in the pipeline.

Facilities to be acquired include a seed cleaning and production facility in Nampa, Idaho, USA and research facilities in Arlington, Wisconsin. Some 31 employees of the DuPont alfalfa group will be offered jobs with the new owner.

Future operations will span the alfalfa seed production regions of California's San Joaquin and Imperial valleys, five other US states, Australia, and three Canadian provinces.