Land O'Lakes completes purchase of Purina Mills
November 01, 2001
by Emily Wilson
Land O’Lakes, Inc. on Oct. 11 completed its acquisition of Purina Mills, Inc., at the cash price of U.S.$23 per share of Purina Mills stock. Purina Mills will now become part of the consolidated business operated by Land O’Lakes Farmland Feed LLC.
Jack Gherty, Land O’Lakes president and chief executive officer, said the acquisition addresses ongoing feed industry trends.
"Through this acquisition, we are building the economies of scale and critical mass necessary to compete in the consolidating feed industry," Gherty explained. "By bringing Purina Mills into our system, we are creating a national feed organization that is extremely well-positioned to succeed long-term and deliver increasing value to customers and owners."
The combined organization’s annual feed sales are expected to total approximately U.S.$2.5 billion.
Gherty said that under the new structure, Land O’Lakes Farmland Feed and Purina Mills dealers will be served through separate, brand-dedicated sales and marketing groups, with the expanded organization delivering additional value through increased efficiency in such areas as production, distribution and research and development.
Bob DeGregorio, who will lead the combined company, said the two organizations represent a very positive, strategic fit.
"The acquisition brings together complementary geography and product lines, and unites two organizations and brands that share a high level of customer recognition and a proven record of quality and service," DeGregorio said.