Platte River Equity Acquires Turf Care Supply

Platte River Equity, a private equity firm based in Denver, Colo., announced on Jan. 11 that it has made a majority investment in Turf Care Supply LLC, a formulator and blender of coated nitrogen and other fertilizer products for the turf and ornamental market.

Established in 1974, Turf Care operates four facilities throughout the eastern U.S., including its corporate headquarters in Brunswick, Ohio, and manufacturing locations at Martins Ferry, Ohio, Hatfield, Mass., and Sebring, Fla.

The transaction also includes Allied Nutrients, a division within Turf Care focused on supplying enhanced efficiency fertilizer. Allied Nutrients was formed in 2020 following an agreement with Koch Agronomic Services LLC, Wichita, Kan., under which Turf Care was granted an exclusive license to market and distribute a range of Koch enhanced efficiency fertilizers in North America for turf and ornamental applications (GM Sept. 4, 2020).

“We look forward to helping management capitalize on Turf Care’s organic growth and acquisition opportunities,” said Kris Whalen, Managing Director of Platte River, adding that Turf Care “will be a strong addition to Platte River’s portfolio of companies.”

Founded in 2006, Platte River is focused on investments in established lower middle market operating companies in targeted industrial sectors. The firm said it utilizes conservative capital structures in order to invest in future growth opportunities and withstand changing economic environments. Platte River has raised funds with committed capital in excess of $1.3 billion, and is currently investing out of its $625 million fourth fund.

Turf Care CEO William Milowitz said Platte River’s cultural fit and relevant experience were important to the Turf Care team as it chose a partner to support the company’s next phase of growth.

“We remain committed to our strategy of providing exceptional customer service, investing in our people, and strategically growing our business,” said Mark Mangan, Chief Operating Officer of Turf Care. “We look forward to expanding Turf Care’s position as a leader in the turf and ornamental market with the support of Platte River.”

Bartlit Beck LLP served as legal counsel to Platte River. Calfee, Halter & Griswold LLP served as legal counsel, and Citizens M&A Advisory served as financial advisor to Turf Care.

Simplot Grower Solutions to Build New Alabama Location

The J.R. Simplot Co., Boise, announced on Jan. 10 that its Simplot Growers Solutions will increase its services to growers in southern Alabama and the Florida Panhandle by building a new location in Opp, Ala. It will be located in the Opp Industrial Park on the Florala Highway.

“The growers in the Opp area will be fantastic partners, and we’re thrilled to bring our offerings to help them meet their goals,” said Jamie Scanlon, Head of Customer Experience for Simplot Growers Solutions. “This location will increase our ability to provide growers the timely products and services they need to drive value across their farming operations.”

The company said it is growing its position as a dynamic agribusiness leader with new stores in the Southeast that complement existing locations spanning the continental U.S. It said these retail outlets offer a full suite of exclusive products, ag inputs and cutting-edge technology, and top-notch services for farmers.

The company said it has about 240 outlets throughout the U.S., with 26 of those in the Southeast, from Mississippi east. The company significantly boosted its number of retail outlets with the acquisition of Pinnacle Agriculture in 2020 (GM Jan. 24, 2020). In addition to ag retail, Simplot has also expanded its presence in the turf, horticulture and the specialty plant nutrition business in the region in recent years (GM Nov. 16, 2018).

Yara, Lantmännen Partner on Green Fertilizer

Yara International ASA, Oslo, and Northern European ag cooperative Lantmännen, Stockholm, have signed an agreement to bring fossil-free fertilizers to market. The product will be produced by Yara and marketed by Lantmannen in Sweden starting in 2023. The two partners began testing the commercial viability of green fertilizers in 2019.

Instead of using fossil fuels such as natural gas to produce ammonia, the green fertilizers will be produced with ammonia based on renewable energy produced in Europe, such as Norwegian hydropower. The result will be fertilizers with an 80-90 percent lower carbon footprint. Yara has a portfolio of green ammonia projects, which will be key to producing green fertilizers, in Norway, the Netherlands, and Australia, and is working actively to expand its clean ammonia business.

“Our partnership with Lantmännen to bring green fertilizers to market is crucial for decarbonizing the food value chain,” said Yara President and CEO Svein Tore Holsether. “We have to transform the food system to deliver on the Paris Agreement, and this will require collaboration across the entire food chain instead of working in silos. The Yara-Lantmännen partnership is a concrete example of how this can be done.”

“Lantmännen drives the development towards farming of the future,” said Per Olof Nyman, Group President & CEO at Lantmännen. “With the green fertilizers from Yara in place we enable Swedish farmers to continue to be at the forefront, offering our customers sustainability performance according to global climate targets, as well as bringing sustainable food to consumers. With this partnership, we can continue to meet an increased market demand for sustainable products.”

The cooperative said by combining the fertilizer with fossil free fuels, transport, and precision farming, it will be able to establish a fossil free value chain from field to fork. It said it has reduced the climate footprint from wheat cultivation by up to 30 percent since 2015. With green fertilizers included in the program, the climate impact will be reduced even further by 20 percentage points.

Yara said its nitrate-based mineral fertilizers produced in the European Union and Norway already have a carbon footprint that is about 50-60 percent lower compared with most non-E.U. fertilizers. It said this is thanks to the use of a best available technology (BAT) catalytic process that reduces greenhouse gas emissions during production, which was first developed by Yara and later shared with other producers.

Hexion Sold to American Securities

Hexion Holdings Corp., Columbus, Ohio, last month entered into a definitive agreement to be acquired by affiliates of New York-based equity firm American Securities LLC for US$1.7 billion, or $30.00 per share in cash.

The transaction is expected to close in the first half of 2022, following and conditioned upon the closing of the company’s previously announced sale of its Epoxy business to Westlake Chemical Corp., Houston, shareholder and regulatory approvals, and satisfaction of other customary closing conditions.

Holders of a majority of the outstanding Hexion shares have agreed to support the transaction.

Hexion net sales for the year-ended Dec. 31, 2020, were $2.5 billion. Pro forma net sales for the same period, reflecting the sale of the company’s Epoxy business, would have been approximately $1.4 billion.

Post-sale of the Epoxy business, the remaining Hexion business will be a global producer of adhesives and performance materials that enable the production of engineered wood products and other growing specialty materials. The company has 27 manufacturing facilities globally and approximately 1,300 employees.

The transaction, announced Dec. 20, delivered Hexion shareholders a 15 percent premium to the closing price as of Dec. 17, 2021, and a 53 percent premium to the company’s closing share price on July 30, 2021, the day prior to its announcement of its ongoing strategic review.

“Hexion is a market leader and leverages deep chemistry and application knowledge to support its customers in diverse end markets,” said Scott Wolff, a Managing Director of American Securities. “The company is well-aligned with global megatrends, including safety and sustainability requirements and regulations, population growth, and household formation. We are thrilled to partner with Hexion to support the next chapter of the company’s growth.”

In the Hexion-Westlake deal, which was first announced Nov. 24, 2021, Hexion entered into a definitive agreement to sell its Epoxy-based Coatings and Composite businesses, including the epoxy specialty resins and base epoxy resins and intermediates product lines, for approximately $1.2 billion to Westlake.

The business generated total sales of approximately $1.5 billion for the last twelve months ended Sept. 30, 2021. The transaction includes approximately 1,300 associates and eight manufacturing facilities globally.

Growmark Takes Full Ownership of AgriVisor

Growmark Inc., Bloomington, Ill., reported on Jan. 11 that it is now the sole owner and operator of AgriVisor LLC, Bloomington, Ill., a full-service agricultural risk management and marketing services firm. This comes after Growmark purchased Illinois Agricultural Association’s ownership interest in AgriVisor on Dec. 30, 2021.

AgriVisor delivers market analysis and recommendations to more than 1,000 producers across North America. Using its relationships with grain elevators, farm insurance brokerages, farm bureaus, ag research firms, and other ag advisory firms, Growmark said AgriVisor leverages collective buying power and pricing strategies on crop insurance and other services such as risk management too Crossover Solutions™.

“We continually adapt our services to meet the high demands of marketing, especially in times of volatility, utilizing the latest technology,” said Growmark Manager of Grain Origination Tim Tresslar.

“Under Growmark’s ownership, we have assembled an industry-leading team of experienced professionals to assist customers with an unsurpassed level of customer service,” he continued. “Despite rapid and sometimes challenging changes in this industry, our advice and recommendations have remained focused on a single objective: to improve the profitability of your farm business.”

OMV Takes $2 B Impairment; Plan to Sell Borealis Continues

OMV AG, Vienna, took a non-cash impairment last quarter that threatens to erode expectations for full-year earnings as Austria’s state-controlled energy major attempts to pivot away from oil, according to a Bloomberg report. The company will write down €1.7 billion (US$1.95 billion) on its exploration, production, and refining and Borealis AG fertilizer business, according to a statement Jan. 13. The news comes as the company saw surging input costs during the quarter.

Most of the items would reportedly be classified as special items in the company’s quarterly earnings.

OMV has been seeking to sell its Borealis fertilizer subsidiary for a while (GM Nov. 5, 2021; Feb. 5, 2021). The company told Reuters on Jan. 13 that those plans are ongoing. OMV owns a 75 percent stake in Vienna-based Borealis, which distributes around 5 million mt/y of fertilizers in Western, Central, and Southeast Europe.

The company reported adjusted net income of about €2.3 billion in the first three quarters of 2021, according to data compiled by Bloomberg. OMV reports fourth-quarter and full-year earnings on Feb. 3.

The impairment follows the appointment of new CEO Alfred Stern in the third quarter. The company is preparing to announce a new strategy this quarter that is expected to accelerate a move toward greater sustainability.

Northern Plains Nitrogen Eyes Blue Ammonia Plant for “Shovel Ready” North Dakota Site

Northern Plains Nitrogen (NPN), Grand Forks, N.D., which has been planning a major nitrogen plant for Grand Forks, now plans to build a world-scale blue ammonia plant at the site, which will supply a range of low carbon nitrogen-based fertilizer products to farmers in under-served markets in the northern U.S. and Canada.

NPN Chief Operating Officer Larry Mackie told Green Markets Jan. 13 that the project is “shovel ready,” as the site has been acquired and necessary permits have been received to begin site work.

All that is required is the financing, which Mackie believes will be more forthcoming as the plant will now produce blue ammonia. He noted that unlike gray ammonia, it will be more popular for other uses such as transportation and energy production.

The NPN project has been around since 2012 (GM May 13, 2013; July 16, 2012). Mackie said the delay has a benefit – that with the latest technology, there is no doubt that the plant will be the most competitive nitrogen plant in the country.

In addition to the carbon capture, which will assure the blue ammonia designation, the state in November committed $150 million to the North Dakota Industrial Commission for matching grants to support natural gas pipeline infrastructure, including a major east-west natural gas pipeline from the Bakken oil fields to the eastern part of the state, including Grand Forks. This will assure the project easy access to low-cost gas.

As of 2017, NPN put the cost of the project at $2.5 billion; Mackie updated that figure to $3 billon plus today. He said it would take four years to build once financing is procured. He said technology providers have been lined up, though the company is not ready to announce them at this time.

Ammonia production continues to be put at 2,400 st/d. Granular urea and UAN are put at 800,000 st/y and 500,000 st/y, respectively. Prices for ammonia, urea, and UAN in the region are among the highest in the U.S. heartland. Mackie said the plant would also likely produce industrial ammonium nitrate solution. Diesel exhaust fluid (DEF) is also under consideration.

NPN is partnering with Summit Carbon Solutions, Ames, Iowa, in its carbon capture and storage project, which is focused on decarbonizing agriculture and biofuels industries.

“NPN’s plant is being designed with the latest and most efficient production processes in the world,” said Don Pottinger, NPN CEO. “Carbon capture and storage is a significant opportunity to improve economic and environmental outcomes utilizing safe and proven technologies. By partnering with Summit Carbon Solutions to capture, transport, and permanently store carbon dioxide, we will further reduce the carbon intensity of our products. This is a great story for agriculture, and for the state of North Dakota.”

Summit Carbon Solutions said it is developing the largest carbon capture and storage project in the world, which will have the capacity to capture and permanently store 12 million tons of carbon dioxide every year. The company last year received a strategic investment from John Deere, and said it has partnered with 31 biorefineries across the Midwest to capture and permanently sequester their carbon dioxide emissions.

“NPN and Summit Carbon Solutions share the same goal of lowering the carbon footprint of agriculture while supporting farmers … whether that’s done by delivering sustainable fertilizer products to enhance yields or by improving access for ethanol plants across the Midwest to premium low carbon fuel markets.” said Jim Pirolli, Chief Commercial Officer of Summit Carbon Solutions.

NPN will capture 500,000 st/y of carbon dioxide emissions, which Summit Carbon Solutions will transport and store permanently in central North Dakota. Last month, Summit Carbon Solutions announced significant milestones in development of its carbon storage facilities in North Dakota, having received state and local permits to collect 3D seismic data and begin drilling stratigraphic test wells, activities which are now underway.

“Projects like this highlight the opportunities for partnerships with other states and private industry to store carbon dioxide while creating jobs and generating revenue for North Dakotans right here at home,” said North Dakota Gov. Doug Burgum. “We can capitalize on our state’s geologic jackpot to store not only our own CO2, but also up to 50 years’ worth of our entire nation’s carbon output.

“As the first state in the nation to achieve primacy over carbon capture permitting, North Dakota is well-positioned to lead the nation in carbon capture, utilization and storage,” he continued. “We’re grateful for this investment by Northern Plains Nitrogen and Summit Carbon Solutions as we seek to grow our agriculture, energy, and biofuels industries with environmental stewardship and positive economic impact for generations to come.”

More Analysts Address Nutrien CEO Exit

The surprise exit on Jan. 4 of Nutrien Ltd. CEO Mayo Schmidt (GM Jan. 7, p. 1) just eight months into the job has continued to garner reaction from analysts.

“My concern is why does this keep happening,” said Brian Madden, Senior Vice President and Portfolio Manager at Toronto-based Goodreid Investment Council, which holds Nutrien shares. “It raises some questions about the board and governance,” he said in a Bloomberg report. “This is not something that comforts or inspires investors.”

It could be as simple as Schmidt and the other board directors deciding that he wasn’t the right fit to lead the company long term, said Seth Goldstein, an analyst at Morningstar Investment Service. If the fit wasn’t right, “it’s best to move on quickly,” he said.

Goodreid’s Madden said he plans to continue holding Nutrien shares since the company has world-class potash deposits that are in the ground regardless of who is at the helm.

Still, “in a perfect world we would have full transparency on all this,” he said. “I don’t know if we’re ever really going to find out.”

Nutrien shares closed Jan. 12 at $72.30 having regained any losses occurring after the CEO announcement made on Jan. 4.

FBN, EDF Partner on Sustainable Ag Fund

Agriculture technology firm Farmers Business Network (FBN), San Carlos, Calif., and the nonprofit Environmental Defense Fund are starting a $25 million pilot fund that rewards farmers who meet soil health standards and use nitrogen fertilizer efficiently, Bloomberg reported.

The fund, which Bloomberg said will try to incentivize farmers to adopt more sustainable growing methods due to the impacts of climate change, will provide one-year lines of credit of up to $5 million, with lower rates and fees, to 30-40 farmers. The fund is reportedly enrolling farmers growing a combination of corn, soybeans, and wheat, and Bloomberg said FBN hopes to scale the fund to $500 million over three years.

“What we’ve seen is as farmers improve the health of their soil, they’re improving organic matter, then they don’t need as much” fertilizer and other inputs, Maggie Monast, Senior Director of Climate-Smart Agriculture at EDF, said in an interview with Bloomberg.

AMVAC, Verdesian Partner on Micronutrients

AMVAC, a subsidiary of agricultural inputs provider American Vanguard Corp., Newport Beach, Calif., and specialty fertilizer producer Verdesian Life Sciences, Cary, N.C., announced on Jan. 11 that they have expanded their relationship to include MicroSync® IronClad IDC and MicroSync®ZINC micronutrients.

Verdesian’s MicroSync® ZINC was first made available for the 2021 planting season through SIMPAS-applied Solutions™ (SaS), which are products prescriptively applied with patented SmartCartridge®container technology to address unique agronomic needs. According to the companies, farmers can use SmartCartridge technology to apply precise rates of zinc by management zone.

The companies said multiple SaS products, such as insecticides, fungicides, nematicides, and micronutrients, are delivered simultaneously in-furrow during planting using the SIMPAS Application System. MicroSync IronClad IDC, a granular fertilizer designed to supply increased available iron to crops, will be available as a SaS product for the 2022 planting season.

“We’re pleased to continue expanding the SaS family of products, each of which has been carefully selected to address farmers’ most pressing agronomic challenges and needs,” said Jim Lappin, Director of SIMPAS Portfolio and Alliances at AMVAC. “Additionally we’re pleased to welcome Verdesian to our growing roster of SIMPAS partners and collaborators, which also includes Trimble and Corteva Agriscience. We look forward to making additional announcements regarding SaS products and partnerships in the weeks and months to come.”

Current SaS products also include AZTEC® HC SmartCartridge Insecticide, COUNTER® 20G SmartCartridge Insecticide / Nematicide, and Force® 10G HL SmartCartridge Insecticide.

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