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Monday, July 13, 2015
Land O’Lakes, United Suppliers to merge
Land O’Lakes Inc. and United Suppliers Inc. of Ames, Iowa, intend to merge their crop inputs businesses. Together, the two organizations will provide owner customers’ expanded product offerings, enhanced precision agriculture services, tools and technologies, improved product insights, consulting services and more.
“This move comes at a time when scale is increasingly important in addressing changing industry dynamics, including rapid consolidation on the supplier, retailer and grower levels, fast-paced technological innovation and the need for increasing and expanded service offerings for customers,” said Chris Policinski, president and CEO of Land O'Lakes. “We are excited to come together with United Suppliers and expect our members, owners and customers will benefit greatly from this merger.”
Under this agreement, the intention is to merge United Suppliers Inc. and Land O’Lakes Inc. The first step of the merger will be to combine the two companies’ seed and crop protection businesses, and a second step to follow will bring in the crop nutrient business. This merger builds on the recent successes of the two companies and aims to create a single, strong, relevant and competitive entity. In 2014, WinField had $4.9 billion in seed and crop protection product sales and United Suppliers had $2.6 billion in crop protection, seed and crop nutrient sales.
“We are both experiencing great growth in this industry and together we view this merger as a continuation of that journey,” said Brad Oelmann, president and CEO of United Suppliers.
Going forward, both organizations will continue with their existing go-to-market strategies and will draw upon each other’s expertise to better meet customer needs. Before the deal is final, United Suppliers’ owners and Land O’Lakes’ members will need to vote on the details surrounding the merger. Those votes are slated for August 2015, with the closing anticipated in October 2015.