The Andersons, Inc.
) in association with Lansing Trade Group, LLC, has entered into
an agreement to acquire Thompsons Limited. Subject to customary
closing conditions, the acquisition is expected to close at the
beginning of the third quarter. Both the companies will equally
own the business.
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Headquartered in Blenheim, Ontario, Thompsons Limited is an
integrated grain and food-grade bean handler and agronomy input
provider. Even after the acquisition, it will continue to operate
as Thompsons Limited, while Lansing Trade Group's current office
in Chatham, Ontario, will be consolidated into Thompsons.
Thompsons Limited will benefit from the combined strength of
Lansing and The Andersons in its other areas of business
including grains, food-grade products and farm services. The
acquisition will provide Lansing Trade Group an opportunity to
grow its existing Canadian business which is in line with its
long-term strategy. It will also assist immediate growth in the
crop nutrients sector of Lansing.
Andersons, however, will secure its position in Ontario through
this acquisition. It will also help Andersons in long-term growth
as Thompsons, having a similar strategy, is keen on cultivating
and maintaining long-lasting relationships with growers and end
Maumee, Ohio-based Andersons, which belongs to the agricultural
and farm products industry along with
Archer Daniels Midland Co
), reported revenues of $112 million in its Plant Nutrient Group
in first-quarter 2013, down 36% from the year-ago quarter, led by
a significant decrease in volume. Moreover, delays in fieldwork
and adverse weather condition contributed to the decline.
The recently acquired assets from Green Plains Grain Company and
Mt. Pulaski Products will boost Andersons' top and bottom lines.
The Plant Nutrient Group should also benefit from an anticipated
record corn crop planting in the second quarter, if the weather
permits. However, the U.S drought will likely continue to
negatively impact the grain and ethanol businesses in 2013.
Andersons currently retains a short-term Zacks Rank #3 (Hold).