The Andersons Signs Letter of Intent with The Scotts Company for Sale of Scotts' U.S. Professional Turf Business
Sep 6, 2000
The Andersons, Inc.
The acquisition includes Scott's ProTurf®, Contec™ and other brand names, the distribution network, customer lists, and all trademarks, patents, and copyrights associated with the professional turf market. The transaction does not include any of Scotts' consumer, grass seed, lawn care services or horticultural businesses.
"Today's agreement will bring together the top brands in premium granular turf products in the professional market. This acquisition is an important step toward achieving our strategic goal of becoming the leader in the marketing, manufacturing, logistics, and distribution of golf course and other professional turf products in the United States," said Mike Anderson, president and chief executive officer of The Andersons.
"The professional turf industry is consolidating and we're taking a leading role," added Rick Anderson, president of The Andersons Processing Group. "This transaction complements the recent expansion of our production facilities which include a presence in the eastern and southern portions of the United States, and will add in excess of 40 percent to the Group's revenue. We will continue to seek additional production sites in the west and remain open to additional acquisition opportunities."
Due to the seasonal nature of the business the full benefit of this transaction will not be realized until 2001.
Rick Anderson continued, "Joining together two top brands in the United States will deliver a comprehensive product line and superior solutions to customers. This will be a championship pairing for golf course superintendents and other turf pros. For the first time distributors will benefit by getting a complete product line from one company. The Andersons will now offer a one- stop supply of premium granular products."
The Andersons operates production facilities in Maumee and Bowling Green, Ohio, Pottstown, Penn, and Montgomery, Ala.
As part of the acquisition, The Nu-Gro Corporation, Branford, Ontario
The Andersons Processing Group, headquartered in Maumee, Ohio, has become a benchmark for high quality and performance in the professional turf industry. The company is recognized as an industry leader in particle size technology with its Tee Time®, Andersons Professional Turf Products™ and other granular products. The Andersons is also the leading supplier of exclusive brand fertilizer products to the U.S. consumer lawn and garden market.
The Andersons is a respected leader and dominant regional player in the grain industry. This strong position in its basic businesses has allowed the company to diversify into other agribusiness operations, several processing and manufacturing businesses, and general merchandise retailing. The company has been in operation since 1947.
This release contains forward-looking statements, including statements with respect to anticipated revenue growth, adequacy of cash flows and profitability. These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, economic, weather and competitive conditions, risks associated with acquisitions and the risk factors set forth from time to time in the company's filing with the Securities and Exchange Commission.
For further information regarding The Andersons free of charge via fax dial 1-800-PRO-INFO and enter company code "ANDE."
SOURCE: The Andersons, Inc.
Contact: Gary Smith of The Andersons, Inc., 419-891-6417; or Marilyn
Windsor, 312-640-6692, or Lisa Fortuna, 312-640-6779, both of The Financial