Land O’Lakes Merging With United Suppliers
Arden Hills-based Land O’Lakes is acquiring United Suppliers Inc., an Ames, Iowa-based crop inputs business.
United Suppliers will be merged with Land O’Lakes’ own crop inputs business, WinField, which the companies say will make them more competitive in the agribusiness industry. No terms of the deal were disclosed.
“This move comes at a time when scale is increasingly important in addressing changing industry dynamics, including rapid consolidation on the supplier, retail and grower levels, fast-paced technological innovation and the need for increasing and expanded service offerings for customers,” Chris Policinski, president and CEO of Land O’Lakes, said in a statement.
Immediate focus is being placed on combining the two companies’ seed and crop protection businesses, followed by the crop nutrient businesses soon afterward. Last year, WinField sold $4.9 billion in seed and crop protection products, while United Suppliers raked in $2.6 billion in the same market.
Both companies foresee advantages from the merger, specifically a potential for increased revenue, the expansion of product portfolios and geographic footprints, alongside the development of each business’ go-to-market strategies.
“Both can strengthen the capability in each other’s operations,” said Alecia Engelmeyer, a spokesperson for Land O’Lakes and United Suppliers. “WinField has an area of expertise on the consulting side, and United Suppliers have a very stable footprint, unique product and go-to-market strategy.”
Specifics of the merger are still being hashed out. The deal is expected to be voted on in August and closed in October.
Employment at the two companies is unlikely to change, Land O’Lakes said. Currently, its WinField division employs roughly 2,000 people in 90 locations. United Suppliers operates in 50 locations with approximately 400 employees.