Top 10 Ag Retail Acquisitions Of The Last Decade
November 8, 2012 
Consolidation in ag retail tends to come in waves. Just when it appears to be receding, you can expect the mergers and acquisitions to start rolling in again.
This year has been a fairly active one on the consolidation front, all things considered. Crop Production Services (CPS) acquired Ritter Crop Services in March. In April, United Cooperative finalized a merger with Cooperative Services, marking the third such partnership by the Beaver Dam, WI, co-op in three months. Wilbur-Ellis Co. purchased the assets of Mott Grain in Mott, ND, in October.
So where do these recent acquisitions rank in terms of biggest ag retail deals of the past 10 years? I attempted to answer this question with the aid of The Asmark Institute’s Consolidation Chart. The chart provides a historical look (with an assist from the CropLife 100 list) at acquisitions, joint ventures and mergers among the top 100 largest ag retailers from 1984 to 2011. Thus, here are the biggest acquisitions — based on number of retail outlets acquired — that have taken place since 2003. (Hint: Agrium appears on the list more than once.)
1. Agrium > United Agri Products, Inc.
Year: 2008
Retail outlets acquired: 337
Agrium purchased United Agri Products (UAP) in 2008 to create the largest agricultural retailer in North America. The combined sales of the two companies was nearly $8 billion. This was a transforming transaction for Agrium, as the company’s retail branches in the U.S. increased from 489 locations to 826. “The acquisition will significantly expand our geographic base and our product diversity, and will offer an opportunity to leverage strengths of both companies,” said Mike Wilson, President and CEO of Agrium.
2. Agrium > Royster-Clark
Year: 2006
Retail outlets acquired: 254
Agrium continued to build its retail franchise in 2006 through the acquisition of 254 Royster-Clark retail operations. Royster-Clark had reported more than $1 billion in revenue in 2005. “A key benefit from this acquisition is the addition of the experienced and valued employees of Royster-Clark,” said Mike Wilson, President and CEO of Agrium, at the time of the acquisition. “We look forward to merging the talents of our two retail operations to create the premier North American agricultural retail company.”
3. Agrium > Archer Daniels Midland (ADM)
Year: 2007
Retail outlets acquired: 32
Agrium expanded its retail operations into the Southern U.S. Plains through the acquisition of 32 retail outlets (18 farm centers and 14 satellites in Kansas and Oklahoma) from Archer Daniels Midland (ADM) in 2007. “We expect this acquisition to provide a platform for further expansion in the Southern U.S. Plains as we continue to deliver on our strategic growth objectives,” said Mike Wilson, Agrium President and CEO. ADM retail outlets had a combined annual crop input revenue of approximately $60 million.
4. Agrium > Agriliance retail locations
Year: 2009
Retail outlets acquired: 24
Agrium expanded its retail operations in Texas and New Mexico in 2009 with the acquisition of 24 outlets (18 farm centers and 6 satellites) from Agriliance. The agreement included more than 50,000 tons of fertilizer storage. “We are committed to deliver on our strategic growth objectives of doubling the size of our Retail business,” said Mike Wilson, Agrium President and CEO. “The purchase of these retail outlets will enhance our ability to serve customers in these states and we look forward to working with the farmers there.”
5. Agrium > Miles Farm Supply
Year: 2010
Retail outlets acquired: 19
Agrium completed its purchase of the crop protection business of Miles Farm Supply in Owensboro, KY, in 2010. Through the acquisition, Agrium added 19 retail outlets – 16 in Kentucky, two in Indiana and one in Tennessee. “Kentucky was a gap area for us, so it’s really a nice fit for the company,” said Jeff Tarsi, Agrium Retail’s vice president of business strategies. The sale did not include any of Miles’ businesses outside of retail crop protection. The company had ranked No. 18 in the 2009 CropLife 100.
6. Simplot Retail > Britz Fertilizer locations
Year: 2010
Retail outlets acquired: 10
In 2010, J.R. Simplot acquired the minority interest of Britz-Simplot Grower Solutions, LLC, a key distributor of seed, crop nutrition and crop protection products to growers in California’s fertile San Joaquin Valley. The LLC was formed in October 2008 as a transitional step in Simplot’s acquisition of Britz Fertilizer, Inc. The 10 former Britz Fertilizer locations now operate within the Simplot Grower Solutions distribution network, comprised of nearly 100 stores from California to Minnesota and Washington to Texas.
7. Hintzsche Fertilizer > Burroughs Ag Services
Year: 2011
Retail outlets acquired: 9
Hintzsche Fertilizer acquired nine retail outlets from Burroughs Ag Services, located in north central Illinois, in 2011. The business continues to operate under the name of Burroughs Ag Services, as a subsidiary of Hintzsche Fertilizer. “We look forward to the expansion of our business and the synergies it will provide to both companies,” said company president David Hintzsche at the time. “Our ultimate goal is to improve the production and profitability of all of our growers.”
8. CPS > Ritter Crop Services
Year: 2012
Retail outlets acquired: 7
CPS, the retail business unit of Agrium, acquired certain assets related to the agronomy services business of Ritter Crop Services (No. 46 on the CropLife 100) in early 2012. The acquisition enhanced the company’s position in the Mid-South Region with seven retail locations in Northeast Arkansas. “It’s part of our goal to be the leading provider of agricultural inputs in each of our markets,” the company stated. Following the closing of the transaction, all Ritter Crop Services employees became employees of CPS.
9. Frenchman Valley Co-op > Wright Lorenz facilities
Year: 2007
Retail outlets acquired: 4
Frenchman Valley Co-op (FVC) acquired four elevator facilities in Nebraska from Wright Lorenz in 2007. The facilities added approximately four million bushels of federally licensed storage and nine full-time employees to FVC. As a result, the company’s increased revenue bumped FVC’s ranking on the top 100 list of largest U.S. ag retailers from No. 40 in 2007, to No. 35 in 2008.
10. Wilbur-Ellis Co. > Premier Ag, LLC
Year: 2010
Retail outlets acquired: 3
In 2010, Wilbur-Ellis purchased the assets of Premier Ag, a full-service plant nutrition, seed and plant protection products retailer, which had been co-owned by Cargill and Sunray Co-op. The purchase included three locations in Sunray, TX, and Hugoton, KS. Steven Dietze, Wilbur-Ellis Vice President, South Central Operations, identified Premier’s close proximity to existing operations as an important consideration in pursuing the acquisition. “The geography served by Premier provides us with a natural extension of the market that we now serve in West Texas,” he said.
Subscribe Today For
