J. R. Simplot Co. and Britz Fertilizers Inc. (BFI) have signed a letter of intent for a business venture wherein Simplot would acquire a majority interest in BFI’s agricultural inputs business. BFI is a privately-held California retailer and wholesaler of plant nutrients, crop protection products, and seed. It offers a wide variety of agronomic services, including aerial and satellite imagery.
Both firms are privately held, so details of the intended transaction were not released. The parties anticipate that the transaction will be completed by Sept. 1, 2008.
Bill Whitacre, president of Simplot’s AgriBusiness Group, says this intended acquisition follows Simplot’s strategy to expand into key new products, services, and geographies within Simplot’s core business area.
“The Britz family has built an amazing business by caring for growers in the San Joaquin Valley for over 60 years” he said. “This acquisition will strengthen and complement the Simplot Grower Solutions network and Simplot’s current asset base in California.”
Whitacre said that the San Joaquin Valley is one of the most important crop production regions in the world, with major acreages in fruits, vegetables, and tree and vine crops.
BFI was started in 1948 by Albert Britz, with one location near Five Points, Fresno County. It is still owned and run by Britz family members. BFI now has ten locations throughout the San Joaquin Valley.
David Britz, BFI’s President, said that the decision to join forces with Simplot was “absolutely the right thing to do.”
“The main drivers behind our family’s decision to sell a majority interest to Simplot were long-term concerns for our employees and customers,” he said. “The Simplot culture of respect for employees and its focus on customer service convinced us that this was the perfect opportunity to perpetuate and expand the legacy we have built over the past 60 years.”
While specific terms of the transaction are confidential, the parties intend that BFI’s senior management and employees will remain in their positions under the new arrangement. David Britz is expected to remain active with the company, and Simplot also expects to retain all of the employees for a seamless transition.
If the deal closes it will be somewhat of a coup for Simplot in that Britz has been down this road before with no conclusion. Most recently, Agriliance LLC made a play to buy into Britz; however, those negotiations broke down in early 2006 (GM Jan. 23, 2006, p. 10). In the late 1990s, both Wilbur-Ellis Co. and Terra Industries Inc. were also in talks to buy into Britz, but were unsuccessful (GM Archives).
J. R. Simplot Co. is a privately-held agribusiness firm with headquarters in Boise, Idaho. Principal operations include phosphate mining, fertilizer manufacturing and distribution, farm service centers, professional fertilizer products, food processing and distribution, food brands, Jacklin grass seed, farming, ranching, and livestock production. Simplot’s major operations are in the U.S., Canada, Mexico, Australia, and China. Simplot has 10,000 employees world-wide, with annual revenues in excess of $3.5 billion.