While CHS Inc. and Land O’Lakes Inc. have ended exclusive negotiations to sell the remaining southern retail assets to a management group (GM Jan. 28, p. 1), the two continue to retain BMO Capital Markets to help them sell the assets. This, according to a recent Securities Exchange Commission filing by LOL. Some had suggested that the parents might actually keep the assets for themselves. BMO was brought onboard last summer to assist in Agriliance’s repositioning.
With BMO still in the hunt for a buyer for Agriliance assets, sources suggested that if one large buyer does not come forward, the outlets could be sold off to regional players on a piecemeal basis. Agriliance said last week that about 40 northern locations have been repositioned, primarily with member cooperatives, and that it continues to evaluate options for repositioning the remaining retail operations.
Agriliance said its remaining retail operations consist of just under 100 retail centers and ProSource One locations in the south (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, and Tennessee), along with the separate Agronomy Co. of Canada, Belton, Ont., which supplies inputs to Agromart outlets in Eastern Canada. ProSource One, a Memphis-based distribution company supplies fertilizers, chemicals, seed, and services to professional users throughout the U.S. Its markets include professional turf, ornamental and nursery, aquatics, and vegetation management.
In the meantime, Agriliance let go its leadership team in its Memphis office, including Jim Blome. Tim Witcher, region director, Winfield Solutions of LOL, has been assigned management responsibility for the southern area and will be spending a lot of time in the Memphis office, according to an Agriliance spokesperson. There are no plans to close the Memphis office. The company said this would be up to a buyer.