Land O’Lakes, Inc., yesterday completed its acquisition of Purina Mills, Inc. (Nasdaq: PMIL), at the cash price of $23 per share of Purina Mills stock. Purina Mills will now become part of the consolidated business operated by Land O’Lakes Farmland Feed LLC.
Land O’Lakes President and Chief Executive Officer Jack Gherty today said the acquisition addresses ongoing feed industry trends.
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“Through this acquisition, we are building the economies of scale and critical mass necessary to compete in the consolidating feed industry,” Gherty explained. “By bringing Purina Mills into our system, we are creating a national feed organization that is extremely well-positioned to succeed long-term and deliver increasing value to customers and owners.”
The combined organization’s annual feed sales are expected to total approximately 2.5 billion dollars.
Gherty said that under the new structure, Land O’Lakes Farmland Feed and Purina Mills dealers will be served through separate, brand-dedicated sales and marketing groups, with the expanded organization delivering additional value through increased efficiency in such areas as production, distribution and research and development.
Land O’Lakes Farmland Feed President Bob DeGregorio, who will lead the combined company, said the two organizations represent a very positive, strategic fit.
“The acquisition brings together complementary geography and product lines, and unites two organizations and brands that share a high level of customer recognition and a proven record of quality and service,” DeGregorio said. “As we work to build upon that record, we will focus on making the transition to the new organization as seamless as possible. We expect very little change at the dealer and customer levels.”
Purina Mills, Inc. stockholders will be contacted in writing by Wells Fargo, the transfer agent for Purina Mills, with regard to obtaining their cash payment for their common equity shares.
Land O’Lakes (http://www.landolakesinc.com) is a national, farmer-owned food and agricultural cooperative, with sales approaching $6 billion. Land O’Lakes does business in all fifty states and more than fifty countries. It is a leading marketer of a full line of dairy-based consumer, foodservice and food ingredient products across the U.S.; serves its international customers with a variety of food and animal feed ingredients; and provides farmers and customers with an extensive line of agricultural supplies (feed, seed, crop nutrients and crop protection products) and services.
Purina Mills (http://www.purinamills.com), based in St. Louis, Mo., has 48 plants and approximately 2,300 employees nationwide. Purina Mills is permitted, under a perpetual, royalty-free license agreement from Ralston Purina Company, to use the trademarks “Purina” and the nine-square Checkerboard logo. Purina Mills is not affiliated with Ralston Purina Company, which distributes Purina Dog Chow and Purina Cat Chow brand pet foods.
