J.R. Simplot Co. has acquired a majority interest in a newly-formed company that owns and will operate the business formerly conducted by Britz Fertilizers Inc. (BFI) of Fresno, Calif. BFI retains a minority interest in the new venture, named “Britz-Simplot Grower Solutions.” The two companies signed a letter of intent in April of this year (GM April 28, p. 1), and closed the transaction Oct. 6.
Both Simplot and BFI are privately-held companies, so financial details of the transaction were not released. Under the agreement, BFI’s employees will remain in their positions and the new company’s senior management team will report to Dave Dufault, Simplot’s vice president and general manager, retail business.
Simplot operates a network of retail agricultural input farm service centers throughout the Western United States, including California’s San Joaquin Valley, where BFI is located. BFI’s headquarters are in Fresno, with multiple locations throughout the Valley.
According to Bill Whitacre, President of Simplot’s AgriBusiness Group, Simplot and Britz have a mutual long-term commitment to agriculture.
“This combination of family-owned companies provides growers in California access to the highest quality products and services,” he said.
Whitacre believes commitment was a critical factor.
“The key element of this entire transaction was our commitment to the Britz family of the Simplot culture of respect for employees and a focus on customer service,” Whitacre said. “The Britz family has developed a legacy over their 60 years of operation which will be protected and expanded by Simplot.”
The closing is a coup for Simplot in that other buyers have tried to buy Britz and failed. 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).