Statements | April 9, 2017 | Read Time: 4 minutes
Corporate Relationships Among Monsanto Company, Pharmacia LLC, Pfizer Inc., Solutia Inc., and Eastman Chemical Company
Prior to Sept. 1, 1997, a corporation that was then known as Monsanto Company (Former Monsanto) operated an agricultural products business (the Ag Business), a pharmaceuticals and nutrition business (the Pharmaceuticals Business) and a chemical products business (the Chemicals Business). Former Monsanto is today known as Pharmacia LLC. Pharmacia is now a wholly owned subsidiary of Pfizer Inc., which operates the Pharmaceuticals Business. Solutia is now a wholly-owned subsidiary of Eastman Chemical Company, which operates the Chemicals Business. Today’s Monsanto includes the operations, assets and liabilities that were previously the Ag Business. The following table sets forth a chronology of events that resulted in the formation of Monsanto, Pharmacia and Solutia as three separate and distinct corporations, and it provides a brief background on the relationships among these corporations.
Sept. 1, 1997
- Pharmacia (then known as Monsanto Company) entered into a Distribution Agreement (Distribution Agreement) with Solutia related to the transfer of the operations, assets and liabilities of the Chemicals Business from Pharmacia (then known as Monsanto Company) to Solutia.
- Pursuant to the Distribution Agreement, Solutia assumed and agreed to indemnify Pharmacia (then known as Monsanto Company) for certain liabilities related to the Chemicals Business.
Dec. 19, 1999
- Pharmacia (then known as Monsanto Company) entered into an agreement with Pharmacia & Upjohn, Inc. (PNU) relating to a merger (the Merger).
Feb. 9, 2000
- We were incorporated in Delaware as a wholly owned subsidiary of Pharmacia (then known as Monsanto Company) under the name “Monsanto Ag Company.”
March 31, 2000
- Effective date of the Merger.
- In connection with the Merger, (1) PNU became a wholly owned subsidiary of Pharmacia (then known as Monsanto Company); (2) Pharmacia (then known as Monsanto Company) changed its name from “Monsanto Company” to “Pharmacia Corporation;” and (3) we changed our name from “Monsanto Ag Company” to “Monsanto Company.”
Sept. 1, 2000
- We entered into a Separation Agreement (Separation Agreement) with Pharmacia related to the transfer of the operations, assets and liabilities of the Ag Business from Pharmacia to us.
- Pursuant to the Separation Agreement, we were required to indemnify Pharmacia for any liabilities primarily related to the Ag Business or the Chemicals Business, and for liabilities assumed by Solutia pursuant to the Distribution Agreement, to the extent that Solutia fails to pay, perform or discharge those liabilities.
Oct. 23, 2000
- We completed an initial public offering in which we sold approximately 15 percent of the shares of our common stock to the public. Pharmacia continued to own approximately 85 percent of our common stock.
July 1, 2002
- Pharmacia, Solutia and we amended the Distribution Agreement to provide that Solutia will indemnify us for the same liabilities for which it had agreed to indemnify Pharmacia and to clarify the parties’ rights and obligations.
- Pharmacia and we amended the Separation Agreement to clarify our respective rights and obligations relating to our indemnification obligations.
August 13, 2002
- Pharmacia distributed the shares of our common stock that it owned to its shareowners via a tax-free stock dividend (the Monsanto Spinoff).
- As a result of the Monsanto Spinoff, Pharmacia no longer owns any equity interest in Monsanto.
April 16, 2003
- Pursuant to a merger transaction, Pharmacia became a wholly owned subsidiary of Pfizer.
Dec. 17, 2003
- Solutia and 14 of its U.S. subsidiaries filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Prior to and following this filing, Monsanto assumed the management of certain tort litigation and environmental obligations in order to protect Pharmacia and itself.
Feb. 28, 2008
- Solutia completed its reorganization. In connection with Solutia’s Plan of Reorganization, Solutia, Pharmacia and Monsanto entered into several agreements under which Monsanto continues to manage and assume financial responsibility for certain tort litigation and environmental remediation related to the Chemicals Business. Additionally, we received cash and stock from Solutia (which we subsequently sold) and various releases, and we exercised our right to designate one member of Solutia’s new board and a consent right with respect to four additional members of Solutia’s new board. These agreements are described in more detail in Monsanto’s Form 8-K, filed March 24, 2008, and Form 10-Q, filed June 27, 2008, File No. 001-16167.
July 2, 2012
- Pursuant to a merger transaction, Solutia became a wholly owned subsidiary of Eastman.
Nov. 30, 2012
- Pharmacia converted to a limited liability company and changed its name from “Pharmacia Corporation” to “Pharmacia LLC.”
- There is no control relationship among Monsanto, Pharmacia, or Solutia. However, the indemnification obligations among the companies are ongoing.