Jimmy Sanders Inc., one of the largest family-owned agricultural input supply and distribution businesses in the Mid-South region, announced on Sept. 11 that it has formed a strategic partnership with Pinnacle Agriculture Holdings LLC and affiliates of Apollo Global Management LLC, a leading global alternative investment manager, to pursue the development of a national agricultural input distribution network.
“We are excited about the ongoing growth potential for Jimmy Sanders and we plan to continue our successful strategy of opportunistically acquiring and developing strategic agricultural distribution assets,” said Mike Sanders, president, CEO, and board chairman of Jimmy Sanders. “My family and I are enthusiastic about this partnership and the ability to further enhance the company’s distribution network while maintaining the culture and grower-focused approach the Jimmy Sanders brand has come to represent over the past six decades.”
In a Sept. 10 letter to Jimmy Sanders employees, Mike Sanders said the business had received “a substantial equity investment” from Apollo, which he referred to as an “investment firm known for successfully partnering with businesses like ours.” No other financial details of the partnership were disclosed, but Sanders said Jimmy Sanders “could not have picked a better partner to help us transition into the next phase of our growth.”
Rumors of a deal between Jimmy Sanders and Pinnacle have been circulating for some time. Pinnacle was formed earlier this year by Apollo, the investment firm that purchased United Agri Products North America in 2003 from ConAgra Foods Inc. for approximately $600 million, and then formed UAP Holding Corp, which it sold to Agrium Inc. in 2007 for $2.65 billion.
Pinnacle is headed by UAP veterans Kenny Cordell and Dean Williams, and the company’s mission, according to its website, is to “create a best-in-class input provider in the U.S.” by acquiring strong retail businesses, attracting world-class talent, and using “key technology to become the American Farmer’s most trusted and efficient source of crop inputs.” The website says Pinnacle hopes to become a top five retail supplier in the U.S. by 2017, with a strong presence in all major agricultural regions in the country.
“We are thrilled to partner with the Jimmy Sanders organization and to work with a world-class team of executives who share our view towards the domestic agricultural landscape,” said Jordan Zaken, a senior partner at Apollo Management. “In partnership with the leadership team at Jimmy Sanders and the team of seasoned industry executives at Pinnacle, we will continue to pursue our strategy of developing a national footprint within the agricultural distribution industry.”
Founded in 1953, Jimmy Sanders is headquartered in Cleveland, Miss., and operates some 78 retail locations in Mississippi, Tennessee, Arkansas, Louisiana, Alabama, Georgia, Kentucky, and Texas. Jimmy Sanders’ operations include seed production and sales, agricultural chemical distribution, bulk handling of fertilizer, and precision agriculture services.
Sanders told employees that they “won’t notice major changes going forward” as a result of the partnership. “We will remain focused on continuing to grow into the leading distribution company across the south,” he said. “Our partners are excited about accelerating this growth and we’ve already discussed a number of high priority capital projects.”
While certain members of the Sanders family will no longer be involved in the business, Mike Sanders told employees that he, Michael Sanders Jr., and Jed Turner “will remained significantly invested in, and involved with, the company going forward.” Barry Knight, execut