The Andersons Signs Long-Term Agreement for Breakthrough Product
Additional Applications For Lightweight Chemical Carrier Offer Growth Opportunities
Sep 6, 2000
The Andersons, Inc.
DG-Lite has unique properties that allow the carrier to disintegrate when water is applied, providing widespread active-ingredient dispersion. Each dissolved particulate is capable of distributing its chemical ingredients over a wider area than traditional granular carriers, thus enhancing the effectiveness of the absorbed chemical. As the granules disintegrate, they quickly disappear from the treated surface, which means less opportunity for exposure of pesticides to non-target organisms, like birds, wildlife, pets and people.
Because the new granular product is as effective as a liquid for soil and turf treatment pesticides, chemical application rates can be reduced, with resulting cost and environmental benefits. Additionally, the new particle is lighter than other granular carriers -- offering advantages in shipping and handling -- but robust enough to withstand the rigors of processing, transportation and application.
"This is a breakthough product that has unlimited potential," said Mike Anderson, president and chief executive officer of The Andersons. "Already DG- Lite is the base for a new consumer garden product being produced by The Andersons Processing Group. The new product is manufactured for a well-known national brand company and is sold in most U.S. big-box retail stores that carry lawn and garden products.
"Sales of this new product are double the amount that had been forecast, and are expected to increase 30 percent to 50 percent next year," Anderson added. "At the same time, we have several other formulating projects with customers in key markets that could mean incredible growth for DG-Lite." The Andersons invested about $2 million to establish three production lines in Maumee last October to formulate, mix and package the new product. The plant represents an aggressive entry into the small-packaging arena of the $220 million garden side of the lawn and garden industry.
As part of the agreement with National Lime, The Andersons will combine its product and market knowledge with National Lime's manufacturing expertise to develop a family of lightweight pelleted products that offer unique chemical and application-specific carrier capabilities.
The agreement provides The Andersons with exclusive marketing rights in the agricultural, lawn and garden, ornamental, horticultural and professional turf markets. National Lime has exclusive rights in a variety of other markets including fluxing agents, flue gas reactive agents and glass batch ingredient consolidation. The Andersons will take the lead marketing role in newly defined markets.
National Lime will be the sole supplier of DG-Lite and similar lightweight pelleted products at the firm's plant in Carey, Ohio.
The Andersons Processing Group has become a benchmark for high quality and performance in the professional turf industry and U.S. consumer lawn and garden market. Products are sold to leading retailers under their own label, to independent retailers under The Andersons' label and to golf courses, lawn care operators, sports fields and other turf professionals under the Tee Time® and The Andersons Professional Turf Products™ labels. 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 code ANDE
SOURCE: The Andersons, Inc.
Contact: Gary Smith of The Andersons, 419-891-6417; or Marilyn Windsor,
312-640-6692, or Lisa Fortuna of The Financial Relations Board, 312-640-6779